What is PAYE in South Africa?

PAYE stands for Pay-As-You-Earn. It is the system used by employers to deduct income tax from employees' salaries each month and pay it directly to SARS.

How is monthly PAYE calculated?

Monthly PAYE is calculated by annualising your monthly salary (× 12), applying the SARS tax brackets, deducting rebates and medical aid tax credits, then dividing the annual tax by 12.

What is UIF and how much is deducted?

The Unemployment Insurance Fund (UIF) contribution is 1% of the employee's monthly salary, capped at R177.12/month. The employer contributes an equal amount.

What is SDL and who pays it?

The Skills Development Levy (SDL) is 1% of an employee's monthly remuneration, paid entirely by the employer. It is not deducted from your salary.

What is the difference between PAYE and income tax?

Income tax is the annual liability owed to SARS. PAYE is the monthly mechanism by which your employer deducts and pays that tax on your behalf.

PAYE Calculator South Africa

Calculate your monthly PAYE tax, UIF, and SDL for the 2025/2026 SARS tax year. Monthly, annual, and payslip views — plus commission tax, bonus tax, and multi-period comparison.

⚡ Quick Calculator Get a fast estimate

Monthly Gross Salary

Age Group

Medical Aid Dependants

Monthly PAYE

R 4 783

Annual PAYE

R 57 397

UIF (Employee — 1%)

R 177

UIF (Employer — 1%)

R 177

SDL (Employer — 1%)

R 300

Total Deductions from Salary

R 4 960

Net Monthly Take-Home

R 25 040

Effective Tax Rate

15.94%

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How to Use the PAYE Calculator

Enter your monthly gross salary, select your age group and medical aid members. The calculator applies the 2025/2026 SARS brackets, annual rebates, and medical credits to give your exact monthly PAYE, UIF, and take-home pay.

The Extended Calculator below adds payslip simulation, bonus tax, and monthly/annual views. The Professional Calculator handles commission income, tax directives, and multi-year projection.

Need more detail?

📊 Extended Calculator More options, charts, and scenario comparison

Gross Monthly Salary

Age Group

Medical Aid Members

Pension/RA Contribution

Monthly PAYE

R 4 748

Monthly Take-Home

R 27 450

UIF (Employee)

R 177

SDL (Employer pays)

R 350

Pension/RA

R 2 625

Monthly Pay Breakdown

PAYE Calculation Method (Step by Step)

1. Annual Income = Monthly Gross × 12 2. Taxable Income = Annual Income − Pension/RA Deduction (max 27.5%) 3. Gross Tax = Apply SARS brackets to Taxable Income 4. Net Tax = Gross Tax − Primary Rebate (R17,235) − Secondary Rebate if 65+ (R9,444) − Medical Aid Credits (R364/R364/R246 × 12) 5. Monthly PAYE = Net Annual Tax ÷ 12 6. UIF = min(Monthly Salary × 1%, R177.12) — employee + employer 7. SDL = Monthly Salary × 1% — employer only

UIF and SDL — What Employees Need to Know

Levy	Rate	Monthly Cap	Who Pays	Tax Deductible?
PAYE	18%–45%	No cap	Employee	N/A
UIF	1%	R177.12	Employee + Employer	No
SDL	1%	None	Employer only	Yes (employer)

Worked Example: R30,000/Month Employee

Age 30, medical aid (main member only), R30,000 gross/month

Annual salary: R360,000

Gross tax (bracket 2): R42,678 + 26% × (R360,000 − R237,100) = R74,632

Less primary rebate: −R17,235 = R57,397

Less medical credit (1 member): −R4,368 = R53,029 annual tax

Monthly PAYE: R53,029 ÷ 12 = R4,419/month

UIF: min(R300, R177.12) = R177.12/month

Take-home: R30,000 − R4,419 − R177 = R25,404/month

Need full precision?

🔬 Professional Calculator Complete parameters, sensitivity analysis, and detailed breakdown

Base Employment Income

Annual Gross Salary

RA / Pension Contribution

Age Group

Medical Aid Members

Annual PAYE

R 105 296

Monthly PAYE

R 8 775

Effective Rate

17.55%

Taxable Income

R 540 000

Pension Saving

R 60 000

Commission Income Tax Calculation

Total Revenue / Sales

Commission %

Commission-Related Expenses

Commission EarnedR 75 000

Tax on Commission (marginal)- R 12 600

Net CommissionR 22 400

Tax Directive Scenario

SARS Tax Directive Rate

Enter 0 to use standard brackets. Tax directives fix withholding at a specific rate.

Standard PAYE (brackets)R 105 296

Tax at Directive Rate R 105 296

Multi-Period Comparison

Edit income for each period to compare tax over time.

Year 1 (Current)

Tax: R 66 736

Net: R 413 264

Year 2 (Projected)

Tax: R 85 336

Net: R 454 664

Year 3 (Projected)

Tax: R 105 296

Net: R 494 704

Period	Income	Tax	Rate	Net
Year 1 (Current)	R 480 000	R 66 736	13.9%	R 413 264
Year 2 (Projected)	R 540 000	R 85 336	15.8%	R 454 664
Year 3 (Projected)	R 600 000	R 105 296	17.5%	R 494 704

Frequently Asked Questions

PAYE (Pay-As-You-Earn) is the system where employers deduct income tax from employees' salaries monthly and remit it to SARS. It ensures tax is paid progressively throughout the year, preventing a large lump-sum payment at year-end.

Annualise your monthly salary (× 12), apply SARS tax brackets, subtract primary rebate (R17,235), secondary rebate if 65+ (R9,444), and medical aid credits (R364/R364/R246 × 12). Divide the annual tax by 12 to get monthly PAYE.

UIF is 1% of your salary, capped at R177.12/month (earnings ceiling: R17,712/month). Your employer matches the contribution. UIF is not income-tax deductible and does not reduce your taxable income.

Commission income is taxed as ordinary income at your marginal rate. However, employees earning more than 50% of their income as commission (variable remuneration) may deduct business expenses related to earning that commission under ITA section 8(1)(a).

A tax directive is an instruction from SARS to an employer to withhold PAYE at a specific rate — used for lump sums, retirement fund withdrawals, or where standard withholding would be incorrect. Apply via SARS eFiling.

PAYE Calculator South Africa

How to Use the PAYE Calculator

PAYE Calculation Method (Step by Step)

UIF and SDL — What Employees Need to Know

Worked Example: R30,000/Month Employee

Age 30, medical aid (main member only), R30,000 gross/month

Frequently Asked Questions

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