How take-home pay works in South Africa
Your take-home pay, also called net pay or net salary, is the amount your employer pays into your bank account after statutory and voluntary deductions. For most employees in South Africa the deductions that matter are PAYE income tax, the employee UIF contribution, retirement fund contributions and, if you belong to a scheme through payroll, medical aid.
PAYE is worked out on a progressive scale from 18% to 45% using the SARS 2026/2027 tables. The first R245,100 of taxable income each year is taxed at 18%, and each higher slice of income is taxed at a higher rate. Every taxpayer receives a primary rebate of R17,820 a year, so someone under 65 pays no income tax on annual taxable income up to R99,000, which is about R8,250 a month.
How to work out your take-home pay
Payroll systems follow the same order every month. To check your payslip by hand:
- Start with your gross monthly salary, including any fixed taxable allowances, and multiply it by 12 to get the annual figure.
- Subtract the pension, provident fund or retirement annuity contributions deducted through payroll. These are deductible up to 27.5% of your remuneration, with a ceiling of R430,000 a year.
- What remains is your annual taxable income.
- Find the bracket your taxable income falls into in the SARS table below and apply that bracket's formula. This gives the annual tax before rebates.
- Subtract the rebates for your age: the primary rebate for everyone, plus the secondary rebate from age 65 and the tertiary rebate from age 75.
- If you belong to a medical aid, subtract the medical scheme fees tax credits: R376 a month for you, R376 for your first dependant and R254 for each additional dependant, multiplied by 12.
- Divide the annual tax by 12. The result is your monthly PAYE.
- Subtract PAYE, UIF at 1% of gross pay (no more than R177.12), your retirement contribution and any other deductions from your gross salary. The balance is your take-home pay.
Worked example: R25,000 a month
Here is the full calculation for an employee under 65 earning R25,000 a month, with no retirement contribution and no medical aid, on the 2026/2027 tables.
| Step | Amount |
|---|---|
| Annual salary (R25,000 × 12) | R300,000 |
| Less retirement contributions | R0 |
| Annual taxable income | R300,000 |
| Tax from the bracket table: R44,118 + 26% of the amount above R245,100 | R58,392 |
| Less primary rebate | -R17,820 |
| Annual tax payable | R40,572 |
| Monthly PAYE (annual tax ÷ 12) | R3,381.00 |
| UIF (1% of gross, capped at R177.12) | R177.12 |
| Take-home pay per month | R21,441.88 |
That leaves 85.8% of the gross salary in your pocket. The effective tax rate is 13.5%, lower than the 26% marginal rate, because the lower slices of income are taxed at lower rates and the rebate reduces the total. The calculator above runs these same steps for any salary.
Take-home pay at common salaries
Monthly figures for an employee under 65 with no retirement contributions or medical aid, on the 2026/2027 tables. Use the table as a quick reference, then enter your own details in the calculator for an exact figure.
| Gross per month | PAYE | UIF | Take-home pay | % kept |
|---|---|---|---|---|
| R10,000 | R315.00 | R100.00 | R9,585.00 | 95.9% |
| R15,000 | R1,215.00 | R150.00 | R13,635.00 | 90.9% |
| R20,000 | R2,115.00 | R177.12 | R17,707.88 | 88.5% |
| R25,000 | R3,381.00 | R177.12 | R21,441.88 | 85.8% |
| R30,000 | R4,681.00 | R177.12 | R25,141.88 | 83.8% |
| R40,000 | R7,684.75 | R177.12 | R32,138.13 | 80.3% |
| R50,000 | R11,075.58 | R177.12 | R38,747.30 | 77.5% |
| R75,000 | R20,607.75 | R177.12 | R54,215.13 | 72.3% |
| R100,000 | R30,857.75 | R177.12 | R68,965.13 | 69.0% |
UIF stops rising at R177.12 once pay passes R17,712 a month, while PAYE keeps climbing as more of your income falls into the higher brackets. In a month when you are paid a bonus or commission, PAYE will be higher than this table shows. The bonus tax calculator works out that month on its own.
SARS income tax brackets for 2026/2027
These are the rates of tax for individuals for the year of assessment from 1 March 2026 to 28 February 2027. The rates apply to annual taxable income.
| Taxable income (per year) | Rate of tax |
|---|---|
| R1–R245,100 | 18% of taxable income |
| R245,101–R383,100 | R44,118 + 26% of the amount above R245,100 |
| R383,101–R530,200 | R79,998 + 31% of the amount above R383,100 |
| R530,201–R695,800 | R125,599 + 36% of the amount above R530,200 |
| R695,801–R887,000 | R185,215 + 39% of the amount above R695,800 |
| R887,001–R1,878,600 | R259,783 + 41% of the amount above R887,000 |
| R1,878,601 and above | R666,339 + 45% of the amount above R1,878,600 |
Rebates and tax thresholds
Rebates are subtracted from the tax calculated with the table above. The tax threshold is the income at which the tax from the table equals your rebate, so below it you pay no income tax at all.
| Age | Total rebate (per year) | Tax threshold (per year) |
|---|---|---|
| Under 65 | R17,820 | R99,000 |
| 65 to 74 | R27,585 | R153,250 |
| 75 and older | R30,834 | R171,300 |
For every bracket, rebate, threshold and credit in one place, see the full SARS tax tables. To see only the tax your employer should withhold each month, use the PAYE calculator.
Gross salary, net salary and cost to company
Gross salary is your pay before any deductions. It is the figure most job adverts quote and the starting point for PAYE.
Net salary is the same thing as take-home pay: gross salary after PAYE, UIF, retirement contributions and other deductions.
Cost to company (CTC) is the total your employer spends on you. A CTC package can include, on top of your gross pay, the employer's own 1% UIF contribution, the 1% Skills Development Levy (payable by employers whose annual payroll is above R500,000) and employer contributions to a pension fund or medical aid. A CTC offer of R30,000 a month therefore usually means a lower gross salary on your payslip. Convert a package with the CTC calculator before you compare offers.
Frequently Asked Questions
How is take-home pay calculated in South Africa?
Take-home pay is your gross salary minus PAYE income tax, UIF, retirement fund contributions and any other payroll deductions. PAYE is worked out on your annual taxable income using the SARS sliding scale of 18% to 45%, less the rebates for your age and any medical aid tax credits, and then divided by 12. UIF is 1% of your gross pay, capped at R177.12 a month.
What deductions come off my salary?
The deductions required by law are PAYE income tax and the employee UIF contribution of 1%, capped at R177.12 a month. Most payslips also show retirement fund and medical aid contributions, and some include union fees, loan repayments or garnishee orders.
What is the UIF deduction?
UIF (Unemployment Insurance Fund) is a compulsory deduction of 1% of your gross pay, capped at R177.12 a month because contributions are only calculated on earnings up to R17,712. Your employer pays a matching contribution on top of your salary. The fund pays short-term benefits during unemployment, illness, maternity leave and adoption leave.
How much of my salary will I take home?
On the 2026/27 tables, an employee under 65 with no pension or medical aid takes home about 95.9% of a R10,000 salary, 85.8% of R25,000 (R21,441.88 a month) and 69.0% of R100,000. The share falls as you earn more, because more of your income is taxed in the higher brackets. Retirement and medical aid contributions lower the cash you receive, although both reduce your PAYE.
What is the tax-free threshold for 2026/27?
For the 2026/2027 tax year you pay no income tax if you are under 65 and your annual taxable income is R99,000 or less. The threshold rises to R153,250 for people aged 65 to 74 and R171,300 for people aged 75 and older. For someone under 65, that is roughly R8,250 a month.
Does a pension contribution reduce my tax?
Yes. Contributions to a pension fund, provident fund or retirement annuity are tax deductible up to 27.5% of the greater of your remuneration or taxable income, with a ceiling of R430,000 a year. When the contribution is deducted through payroll, PAYE is calculated on the lower amount. On a salary of R25,000, a 7.5% contribution of R1,875 lowers take-home pay by R1,387.50, not the full R1,875, because PAYE falls by R487.50.
Is the 13th cheque taxed differently?
No. SARS has no separate tax rate for bonuses. A 13th cheque is added to your income for the year and taxed at your marginal rate. Your employer works out the PAYE on it by comparing the tax on your annual salary with and without the bonus, and deducts the full difference in the month it is paid. That is why the deduction looks heavy, but over the whole tax year you pay the same tax as you would if the bonus had been spread across 12 months.
Why is my PAYE different from this calculator?
This calculator assumes the same salary every month for a full tax year. Your payslip can differ if you receive a travel allowance (80% of it is normally included for PAYE), a company car or other fringe benefits, or overtime and commission that vary from month to month. It can also differ if you started the job part way through the tax year, or if you pay your own medical aid or retirement annuity outside payroll. In that case the tax benefit comes through when SARS assesses your annual return.
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