Payroll Guide for South African Employers
Everything you need to run compliant payroll in South Africa
Running payroll in South Africa means calculating PAYE, UIF, SDL, and various allowances correctly every month. Getting it wrong can lead to SARS penalties and employee disputes. This hub brings together all of Accounter's payroll calculators, employment guides, and compliance resources — from calculating a basic salary to understanding cost-to-company packages.
Free Calculators
Calculate instantly — no signup required
Salary / Take-Home Pay Calculator
Calculate your monthly take-home pay after PAYE, UIF, and pension deductions using current SARS tax brackets.
PAYE / UIF / SDL Calculator
Calculate employee PAYE, UIF and SDL deductions with net salary and cost-to-company breakdown.
Cost-to-Company Calculator
Convert your cost-to-company package to net take-home pay, showing all deductions and employer contributions.
Overtime Calculator
Calculate overtime pay using BCEA rates. 1.5x weekday and 2x Sunday/public holiday rates for South African employees.
Leave Days Calculator
Calculate your leave entitlements under the BCEA. Annual, sick, family responsibility, maternity and paternity leave.
Minimum Wage Calculator
Check the current South African national minimum wage and calculate your pay across all sectors.
Severance Pay Calculator
Calculate your severance pay entitlement under the BCEA with notice period and leave payout breakdown.
UIF Calculator
Calculate employee and employer UIF contributions. 1% each, capped at R17,712 monthly remuneration.
SDL Calculator
Calculate your Skills Development Levy (SDL) at 1% of payroll. Check exemption status and SETA claim guidance.
ETI Calculator
Calculate your Employment Tax Incentive savings for hiring young workers aged 18-29. Up to R1,000/month per employee.
Salary vs Dividend
Compare the after-tax outcome of taking salary versus dividends from your company.
Medical Aid Tax Credits Calculator
Calculate your Section 6A and 6B medical aid tax credits and additional medical expenses deduction.
Step-by-Step Guides
Learn how with practical walkthroughs
How to Calculate PAYE in South Africa
Learn how to calculate PAYE tax for employees using SARS tax tables. Step-by-step guide with examples and current tax brackets.
How to Calculate UIF Contributions in South Africa
Learn how to calculate UIF contributions for employees in South Africa. Current rates, ceiling amounts, and employer obligations explained.
How to Calculate Medical Aid Tax Credits in South Africa
Learn how Section 6A and 6B medical aid tax credits work in South Africa. Calculation guide with examples for different family sizes and age groups.
Key Terms Explained
Understanding the jargon
PAYE (Pay As You Earn)
PAYE is the system through which employers deduct income tax from employees' salaries and pay it directly to SARS on their behalf each month.
UIF (Unemployment Insurance Fund)
UIF is a South African social security fund that provides short-term financial relief to workers who become unemployed, ill, or go on maternity leave.
SDL (Skills Development Levy)
SDL is a compulsory levy of 1% of total employee remuneration that South African employers pay to fund skills development and training programmes.
Gross Salary
Gross salary is the total amount an employer pays an employee before any deductions such as PAYE tax, UIF contributions, pension fund contributions, or medical aid.
Net Salary
Net salary (also called take-home pay) is the amount an employee receives after all deductions — including PAYE, UIF, pension contributions, and medical aid — have been subtracted from their gross salary.
Cost to Company (CTC)
Cost to company is the total amount an employer spends on an employee, including gross salary plus employer contributions to UIF, SDL, pension fund, medical aid, and other benefits.
IRP5 Certificate
An IRP5 is an employee tax certificate issued by employers in South Africa, summarising an employee's income and tax deductions for the tax year.
Frequently Asked Questions
How do I calculate PAYE for an employee in South Africa?
Annualise the gross salary, subtract retirement fund contributions (up to 27.5%, capped at R430,000), apply the SARS tax brackets, subtract rebates and medical credits, then divide by 12. Our Salary Calculator does this automatically.
What is the UIF contribution rate in South Africa?
Both employer and employee contribute 1% of remuneration, for a total of 2%. The maximum monthly salary subject to UIF is R17,712, meaning the maximum contribution is R177.12 per party per month.
What is the difference between CTC and gross salary?
Cost-to-company (CTC) is the total amount a company spends to employ someone, including salary, benefits, UIF, SDL, and retirement contributions. Gross salary is just the salary before employee deductions. Use our CTC Calculator to see the breakdown.
What is the national minimum wage in South Africa for 2026?
The national minimum wage is reviewed annually. Our Minimum Wage Calculator is updated with the latest gazetted rate so you can check compliance instantly.
Need help managing your finances?
Accounter gives accountants, bookkeepers, and business owners the tools to stay on top of their numbers.
Try Accounter Free