How your take-home pay is calculated
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 (i.e., the cap applies once your gross exceeds R17,712/month). Your employer contributes a further 1% — that does not come off your pay.
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 the greater of remuneration or taxable income. Entering a percentage here lowers your PAYE accordingly.
Medical Aid Tax Credits are applied against your monthly PAYE. They are non-refundable — your PAYE is reduced to zero at most; the credit cannot produce a cash refund.
SDL (Skills Development Levy) is paid entirely by the employer and is not deducted from your salary. This calculator provides an estimate — your actual payslip may differ due to company-specific policies, benefits, or additional deductions.