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Gross vs net salary

Gross salary is the remuneration amount before deductions. Net salary, often called take-home pay, is the amount left after applicable deductions such as PAYE, UIF and other payroll deductions.

Educational guideReviewed: 28 September 2026

Gross salary

Gross salary is the starting figure used by payroll. It may not be the same as taxable income because different forms of remuneration and exclusions can affect tax treatment.

PAYE

PAYE is employees' tax withheld through payroll. The calculation depends on the applicable tax-year rules and the employee's circumstances.

UIF

UIF includes an employee contribution. SARS currently states that the employee contribution is 1% of remuneration up to the published monthly earnings ceiling of R17 712, which means the maximum employee contribution is R177.12 per month when the full ceiling applies.

Why payslips differ

Retirement contributions, fringe benefits, allowances, medical arrangements and other deductions can change the actual take-home amount. A calculator should therefore be treated as an estimate unless it reproduces the full payroll rules for the specific employee.

Official sources

SARS 2026/27 individual tax rates, rebates and thresholds are published for the tax year from 1 March 2026 to 28 February 2027. SARS also publishes the UIF contribution rules and ceiling.

SARS individual tax rates →
SARS UIF information →

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