Gross pay vs net take-home pay
Your gross salary is what your employer pays before any deductions. Your net salary (take-home pay) is what lands in your bank account after PAYE tax and UIF are deducted. The gap between the two is often larger than people expect.
PAYE (Pay As You Earn) is income tax withheld by your employer each month. It is calculated by annualising your taxable monthly income, applying the SARS 2025/2026 sliding-scale brackets, subtracting applicable rebates and medical credits, then dividing by 12.
UIF (Unemployment Insurance Fund) is 1% of your gross monthly salary, capped at R177.12 per month (the cap applies once your gross exceeds R17,712/month). Your employer contributes a further 1% — that does not come off your pay. UIF entitles you to claim a benefit if you become unemployed, ill, or go on maternity leave.
Retirement fund contributions (pension, provident, or retirement annuity) reduce your taxable income by the contribution amount, up to a SARS maximum of 27.5% of your remuneration or taxable income, capped at R350,000 per year. Entering a contribution percentage here lowers your PAYE accordingly — it is one of the most effective ways to reduce your tax bill.
Medical Aid Tax Credits are applied against your monthly PAYE. They reduce what you owe — they are non-refundable, meaning your PAYE is reduced to zero at most.
SDL (Skills Development Levy) is 1% of payroll, paid entirely by your employer to SETA (sector training bodies). It does not appear on your payslip as a deduction from your salary — it is an employer cost on top of your remuneration.
Your actual payslip may differ from this estimate due to company-specific policies, additional benefits, or other negotiated deductions.