How is a 13th cheque taxed in South Africa?
A 13th cheque (year-end bonus) is treated as part of your annual income by SARS. It is taxed at your marginal rate — the rate that applies to the top portion of your total yearly earnings.
This calculator works out the tax by comparing your annual PAYE with and without the bonus:
UIF contributions of 1% apply to the bonus up to the annual remuneration ceiling of R212,544. Once your regular salary already exceeds this ceiling, no further UIF is deducted from the bonus.
Tax rebates applied (2025/2026): Primary R17,235 · Secondary 65+ R9,444 · Tertiary 75+ R3,145. Medical tax credits and retirement fund deductions are not included — consult a tax professional for a full picture.
13th cheque vs performance bonus: A 13th cheque is a contractual entitlement — a guaranteed extra month's salary specified in your employment contract. A performance bonus is discretionary and varies based on individual or company performance. Both are treated as income and taxed at your marginal rate by SARS, but a 13th cheque is predictable and can be planned for. If your contract specifies a 13th cheque, your employer is legally obliged to pay it; a performance bonus is at the employer's discretion unless contractually guaranteed.