How to read your payslip

The top: earnings

The earnings section lists everything you were paid for the period: your basic salary, plus overtime, commission, bonuses, allowances such as a travel allowance, and any back pay. Together these make up your gross pay. Some payslips also show taxable fringe benefits, such as a company car or a low-interest loan, which are not paid to you in cash but are added to your income for tax.

The middle: deductions

• PAYE: income tax your employer pays to SARS on your behalf, worked out from your annual taxable income and the tax tables.
• UIF: 1% of your pay, up to R 177,12 a month (1% of the R 17 712 ceiling). Your employer pays another 1%.
• Pension, provident or retirement annuity contributions made through your employer. These usually reduce the income your PAYE is worked out on.
• Medical aid contributions. You get a monthly medical tax credit that reduces your PAYE.
• Other deductions you have agreed to, such as union fees, staff loans or insurance.

The bottom: net pay

Net pay is gross pay minus all the deductions, and it should match what arrives in your account. Many payslips also show year-to-date totals, which help you check your tax certificate (IRP5) at the end of the tax year.

Employer contributions

Your payslip may list amounts your employer pays on top of your salary: its 1% UIF, the Skills Development Levy (1% of payroll for employers with a payroll above R 500 000 a year), and its share of pension or medical aid. These are part of your cost to company but do not come out of your pay.

What to check each month

• Your name, ID or tax number and pay period are correct.
• Your hours, overtime and leave match your records.
• PAYE looks reasonable for your income; the take-home pay calculator gives a quick check.
• UIF is being deducted, so you can claim if you need to.
• Year-to-date totals add up.

Frequently asked questions

Why did my PAYE go up when I got a bonus?

PAYE on a bonus is worked out on your annual income including the bonus, so part of it can fall in a higher tax bracket. Any over-deduction is refunded on assessment.

What is cost to company?

Your total package: salary plus the employer’s contributions to things like pension, medical aid and benefits. Take-home pay is lower than cost to company.

My employer deducts UIF but I cannot find my record. What should I do?

Ask your employer to check its declarations on uFiling. If it is not paying over the contributions, you can report it to the Department of Employment and Labour.

Related calculators