How is PAYE calculated in South Africa for 2025/2026?

PAYE is calculated by annualising your monthly salary, applying the SARS tax brackets (18% to 45%), subtracting the primary rebate (R17,235), then dividing by 12. For a R30,000/month salary: annual = R360,000, gross tax ≈ R64,678, less rebate = R47,443, monthly PAYE = R3,954.

How much UIF do I pay per month?

UIF employee contribution is 1% of your gross salary, capped at R177.12/month (salary ceiling R17,712/month). Your employer also contributes 1%. If you earn more than R17,712/month, your UIF contribution is capped at R177.12.

What is the difference between gross salary, net pay, and CTC?

Gross salary is your pay before any deductions. Net pay (take-home) is what you receive after PAYE, UIF, pension, and medical aid deductions. CTC (Cost to Company) is gross salary plus employer contributions (UIF 1%, SDL 1%), representing the total cost to the employer.

Does pension fund contribution reduce my PAYE?

Yes. Approved pension, provident fund, and retirement annuity contributions reduce your taxable income for PAYE purposes, up to 27.5% of income, capped at R350,000/year. A R2,625 pension deduction (7.5% of R35,000) saves approximately R820–R975 in monthly PAYE depending on your bracket.

Payslip Calculator South Africa 2026/2027

Generate a formatted South African payslip showing PAYE (2025/2026 SARS brackets), UIF, pension, medical aid, and net take-home pay. Built for employees, HR managers, and small business payroll.

⚡ Quick Calculator Get a fast estimate

Gross Monthly Salary

Age Group

Payslip — 2025/2026 Tax Year

South Africa | SARS PAYE Deduction

Gross SalaryR 30 000,00

− PAYER 4 783,06

− UIF (Employee 1%)R 177,12

Net PayR 25 039,82

26% marginal rate | Effective PAYE rate: 15.9%

UIF capped at R177.12/month | Primary rebate R17,235/year

How to Use the Payslip Calculator

Enter your gross monthly salary (before any deductions) and select your age group. The calculator applies the 2025/2026 SARS PAYE brackets, calculates UIF (1%, capped at R177.12/month), and shows your formatted payslip with net take-home pay.

The Extended Calculator adds pension fund, medical aid, travel allowance, and bonus fields — plus an employer cost (CTC) breakdown. The Professional Calculator supports multiple employees, prints payslips, and shows annual IRP5 estimates.

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Gross Monthly Salary

Age Group

Pension Fund Contribution

Medical Aid (employee portion)

Travel Allowance

Annual Bonus / 13th Cheque

Monthly Payslip — 2025/2026

Gross Basic SalaryR 35 000,00

− PAYER 4 750,56

− UIF (Employee 1%)R 177,12

− Pension Fund (7.5%)R 2 625,00

− Medical AidR 2 500,00

Net PayR 24 947,32

Before vs After Deductions

PAYE (tax)R 4 750,56

Before: R 6 289,31After: R 4 750,56

Net Pay (take-home)R 24 947,32

Before: R 28 533,57After: R 24 947,32

Grey = before deductions | Coloured = after deductions entered

PAYE Calculation Method (2025/2026)

Annual Taxable Income = (Gross Monthly − Pension − Medical Aid) × 12 Gross Annual Tax = Bracket Base + ((Income − Bracket Floor) × Bracket Rate) Less: Primary Rebate R17,235 Less: Secondary Rebate R9,444 (age 65–74) Less: Tertiary Rebate R3,145 (age 75+) Annual PAYE = max(0, Gross Tax − Rebates) Monthly PAYE = Annual PAYE ÷ 12 UIF (employee) = min(Gross × 1%, R177.12/month)

SARS Tax Brackets 2025/2026

Taxable Income (Annual)	Rate	Base Tax
R0 – R237,100	18%	—
R237,101 – R370,500	26%	R42,678
R370,501 – R512,800	31%	R77,362
R512,801 – R673,000	36%	R121,475
R673,001 – R857,900	39%	R179,147
R857,901 – R1,817,000	41%	R251,258
R1,817,001+	45%	R644,489

Sample Payslip Worked Example

Employee: Under 65, Gross R40,000/month, Pension 7.5%, Medical Aid R2,000

Pension deduction: R40,000 × 7.5% = R3,000

Taxable monthly: R40,000 − R3,000 − R2,000 = R35,000

Annual taxable income: R35,000 × 12 = R420,000

Tax bracket 3: R77,362 + 31% × (R420,000 − R370,500) = R77,362 + R15,345 = R92,707

Less primary rebate: R92,707 − R17,235 = R75,472/year

Monthly PAYE: R75,472 ÷ 12 = R6,289

UIF: min(R40,000 × 1%, R177.12) = R177.12

Net pay: R40,000 − R6,289 − R177.12 − R3,000 − R2,000 = R28,534

Understanding Your Payslip Components

Component	Who Pays	Rate / Cap	Tax Deductible?
PAYE	Employee	18%–45% brackets	N/A
UIF (employee)	Employee	1%, max R177.12/mo	No
UIF (employer)	Employer	1%, same cap	Yes (employer expense)
SDL	Employer	1% (payroll ≥ R500k/year)	Yes
Pension Fund	Both	Employee: max 27.5%/R350k	Yes (employee portion)
Medical Aid	Both	Variable	Tax credits, not deduction

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Employee Name

Gross Monthly Salary

Pension Fund

Medical Aid (employee)

Age Group

Employee — Monthly Payslip

Gross SalaryR 30 000,00

− PAYER 4 198,06

− UIF (Employee 1%)R 177,12

− Pension (7.5%)R 2 250,00

Net PayR 23 374,82

Effective rate: 14.0% | CTC: R 30 477,12

Frequently Asked Questions

PAYE is calculated by annualising your monthly salary, applying SARS tax brackets (18%–45%), subtracting rebates (R17,235 primary), then dividing by 12. For R30,000/month: annual = R360,000, gross tax = R64,678, less rebate = R47,443, monthly PAYE = R3,954.

R0–R237,100 at 18%; R237,101–R370,500 at 26%; R370,501–R512,800 at 31%; R512,801–R673,000 at 36%; R673,001–R857,900 at 39%; R857,901–R1,817,000 at 41%; R1,817,001+ at 45%. Each bracket's base tax already incorporates lower bracket amounts.

1% of your gross salary, capped at R177.12/month. The UIF salary ceiling is R17,712/month — if you earn more, your UIF contribution stays fixed at R177.12. Your employer also pays 1% (same cap).

Gross salary is before any deductions. Net pay is what you receive after PAYE, UIF, pension, and medical aid. CTC (Cost to Company) adds the employer's contributions (UIF 1%, SDL 1%) on top of gross — it represents the total cost to employ you.

Yes. Approved pension, provident fund, and RA contributions reduce your taxable income for PAYE. The deduction is limited to 27.5% of the higher of remuneration or taxable income, capped at R350,000/year. On a R35,000 salary, a 7.5% pension deduction (R2,625) saves approximately R820 in monthly PAYE.

Payslip Calculator South Africa 2026/2027

How to Use the Payslip Calculator

Before vs After Deductions

PAYE Calculation Method (2025/2026)

SARS Tax Brackets 2025/2026

Sample Payslip Worked Example

Employee: Under 65, Gross R40,000/month, Pension 7.5%, Medical Aid R2,000

Understanding Your Payslip Components

Frequently Asked Questions

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