How PAYE and UIF come off a South African salary
South African employers deduct employees' tax (PAYE) every month and pay it over to SARS. The tax for the year is worked out on annual taxable income, then spread over the pay periods. Three steps decide it:
- Start from remuneration and subtract any deductible retirement fund contributions to reach taxable income.
- Apply the progressive tax table to that taxable income.
- Take off the rebates. The primary rebate of R 17,820 applies to every individual, so nobody under 65 pays tax below R 99,000 a year.
The Unemployment Insurance Fund contribution sits outside income tax. It is 1% of pay up to a ceiling, matched by the employer.
Worked example: R360,000 a year, under 65
Taxable income is the full R 360,000 because no retirement contribution is entered. It falls in the second bracket.
R 44,118 + 26% × (R 360,000 − R 245,100) = R 73,992
| Item | Per month | Per year |
|---|---|---|
| Gross remuneration | R 30,000 | R 360,000 |
| Tax before rebates | R 6,166 | R 73,992 |
| Primary rebate | −R 1,485 | −R 17,820 |
| PAYE payable | R 4,681 | R 56,172 |
| UIF (capped) | R 177.12 | R 2,125.44 |
| Take home pay | R 25,141.88 | R 301,702.56 |
The average tax rate here is 15.6%, while the marginal rate on the next rand is 26%. Pay of R 30,000 a month is above the UIF ceiling, so the contribution stops at R 177.12.
SARS tax brackets for 2026/27
Budget 2026 adjusted the brackets and rebates for inflation after two years without change. The table for the 2027 tax year:
| Taxable income per year | Tax |
|---|---|
| Up to R 245,100 | 18% |
| R 245,101 to R 383,100 | R 44,118 + 26% above R 245,100 |
| R 383,101 to R 530,200 | R 79,998 + 31% above R 383,100 |
| R 530,201 to R 695,800 | R 125,599 + 36% above R 530,200 |
| R 695,801 to R 887,000 | R 185,215 + 39% above R 695,800 |
| R 887,001 to R 1,878,600 | R 259,783 + 41% above R 887,000 |
| R 1,878,601 and above | R 666,339 + 45% above R 1,878,600 |
The tax thresholds, below which no tax is due once the rebates are applied, are R 99,000 under 65, R 153,250 from 65 and R 171,300 from 75.
Age rebates for employees over 65
Older employees get extra rebates on top of the primary one: a secondary rebate of R 9,765 from age 65 and a tertiary rebate of R 3,249 from 75. Age is taken at the end of the tax year, so someone who turns 65 by 28 February 2027 qualifies for the whole year.
Choose the age band in the calculator. On R 360,000, a worker aged 65 to 74 pays R 46,407 a year instead of R 56,172, which adds R 813.75 a month to net pay.
Pension fund and retirement annuity contributions
Contributions to a pension fund, provident fund or retirement annuity reduce taxable income, up to 27.5% of remuneration or taxable income (whichever is higher) and an annual cap of R 430,000. Budget 2026 raised that cap from R350,000 for contributions from 1 March 2026. Anything above the limit carries forward to later years.
Enter the contribution as a share of gross. With 10% going into a fund (R 36,000 a year), PAYE falls from R 56,172 to R 46,812. Take home pay drops by R 2,220 a month rather than the full R 3,000, because SARS effectively funds part of the saving. If your employer pays into the fund for you, that amount is a taxable fringe benefit and also counts toward the limit.
Take home pay at six salary levels
Under 65, no retirement contribution, figures per month.
| Gross per year | PAYE | UIF | Net pay | Total deductions |
|---|---|---|---|---|
| R 120,000 | R 315 | R 100 | R 9,585 | 4.1% |
| R 240,000 | R 2,115 | R 177.12 | R 17,707.88 | 11.5% |
| R 360,000 | R 4,681 | R 177.12 | R 25,141.88 | 16.2% |
| R 500,000 | R 8,201.42 | R 177.12 | R 33,288.13 | 20.1% |
| R 800,000 | R 17,336.08 | R 177.12 | R 49,153.46 | 26.3% |
| R 1,500,000 | R 41,107.75 | R 177.12 | R 83,715.13 | 33.0% |
Need the reverse, a target take home amount turned into the package to ask for? The Net to Gross Calculator works backwards from net pay. To compare what that money buys in Johannesburg, Cape Town or abroad, the Cost of Living Calculator helps.
What is taxed and what is not
- Taxed through PAYE: basic salary, overtime, commission, bonuses and the 13th cheque, leave pay, and fringe benefits such as a company car, low interest loans or employer paid medical aid contributions.
- Partly taxed: travel allowances, where 80% is normally included in PAYE (20% if most travel is for business).
- Outside this calculator: medical scheme fees tax credits, which reduce tax for members and dependants; interest and rental income; lump sums from retirement funds and severance pay, which have their own tables.
Monthly pay and the 13th cheque
Most South African salaries are paid monthly, so the calculator divides the year by 12. A 13th cheque or annual bonus is added to remuneration for the month it is paid, and PAYE on it is worked out at your marginal rate. Include it in the yearly gross to see an average month. For weekly paid staff the annual figures stay the same, split over 52 weeks: R 5,801.97 a week in the example.
Assumptions and official sources
- A tax resident employee with one employer for the full 2026/27 year.
- No medical scheme credits, other income or additional voluntary tax.
- UIF on the R17,712 monthly ceiling that has applied since June 2021; SARS has published no change for 2026.
- Retirement contributions treated as fully within the limits once capped.
Sources: SARS rates of tax for individuals (2027 tax year), the National Treasury and SARS Budget 2026 Tax guide, and SARS guidance on the Unemployment Insurance Fund. Rates for 2026/27.
Frequently Asked Questions
How much is R30,000 gross after tax in South Africa?
About R 25,141.88 a month in 2026/27 for an employee under 65 with no retirement contribution: PAYE R 4,681 and UIF R 177.12.
What is the tax free threshold in South Africa for 2026/27?
R 99,000 a year under 65, R 153,250 from 65 and R 171,300 from 75. Below these amounts the rebates cancel the tax.
What is the maximum UIF deduction per month?
R 177.12, which is 1% of the R 17,712 ceiling. Your employer pays the same again.
Does a retirement annuity reduce my PAYE?
Yes, within 27.5% of remuneration and R 430,000 a year. If the RA is paid privately rather than through payroll, the relief usually arrives as a refund on assessment instead of lower monthly PAYE.
When does the 2026/27 tax year start?
On 1 March 2026. It ends on 28 February 2027, and the new brackets apply to salaries paid from March 2026.
Why is my payslip PAYE slightly different?
Payroll systems annualise each month and may include fringe benefits, medical credits or a bonus. They also round. The yearly total should land close to this estimate if nothing else changes.