How to Read Your Payslip
in South Africa

Basic salary

Your fixed monthly pay — the amount stated in your employment contract. This is the starting point for all PAYE and UIF calculations.

Overtime

Hours worked beyond your ordinary hours, paid at 1.5× your normal rate (or 2× on Sundays and public holidays under the BCEA). Overtime is taxable and increases your PAYE.

Commission

Variable pay linked to sales or performance targets. Fully taxable — a high commission month pushes your annualised income higher and may temporarily increase your PAYE rate.

Travel allowance

A fixed monthly amount to cover work-related travel. 80% of the allowance is subject to PAYE unless you can prove business travel against a logbook, in which case you can claim a tax deduction at year-end.

Housing subsidy

An employer contribution toward accommodation. This is taxable income and must be included in your gross for PAYE purposes.

Your share of a workplace retirement fund — typically 5–7.5% of gross. The good news: it reduces your taxable income before PAYE is applied. So if you contribute R2,250/month to a pension fund on a R30,000 gross salary, your taxable income drops to R27,750 and your PAYE falls accordingly. Your net pay does not decrease by the full pension amount.

Your share of the monthly medical aid premium. This does not reduce your taxable income directly, but SARS provides a Medical Aid Tax Credit — R376/month for the principal member and first dependent, R254 for each additional dependent in 2026/27. This credit reduces your PAYE, partially offsetting the cost.

A court-authorised deduction to repay a debt — typically a credit agreement in arrears. Your employer is legally compelled to deduct the specified amount. If you believe a garnishee on your payslip is incorrect or fraudulent, consult an attorney — unlawful garnishees are common in South Africa.

A deduction to repay a salary advance or employer loan. This must be agreed to in writing under Section 34 of the BCEA and cannot exceed 25% of your net pay in any given month.

SDL — Skills Development Levy

A 1% levy on the employer's total monthly payroll, paid to SARS and channelled through SETAs (Sector Education and Training Authorities) to fund workplace training. SDL is entirely the employer's cost. If you see SDL in your personal deductions, your employer has made a payroll error — query it in writing.

Employer UIF contribution

Your employer contributes 1% of your gross salary to UIF separately from your own 1% deduction. Both contributions are remitted together to the UIF via SARS each month. The employer's share does not reduce your pay and appears in the employer contributions section for reference.

What does PAYE mean on a payslip?

PAYE stands for Pay As You Earn — it is the income tax your employer deducts from your gross salary every month and pays directly to SARS on your behalf. It is calculated using SARS progressive tax brackets: 18% on the first R237,100 of annual taxable income, rising to 45% above R1,817,000. Most employees earning between R15,000 and R50,000 per month pay PAYE at an effective rate of roughly 15–28%.

What does UIF mean on a payslip?

UIF stands for Unemployment Insurance Fund. Your employer deducts 1% of your gross salary per month (capped at R177.12, based on the R17,712 monthly earnings ceiling) and contributes a matching 1% themselves. UIF entitles you to partial income replacement if you become unemployed, take maternity leave, or fall ill. It is governed by the Unemployment Insurance Act, 2001.

What does SDL mean on a payslip?

SDL stands for Skills Development Levy — a 1% levy on your employer's total payroll paid to SARS each month to fund workplace training. SDL is an employer cost, not a deduction from your salary. You should never see SDL reducing your net pay. If it appears in your deductions column, your employer has made an error.

Why is my PAYE different every month?

PAYE can vary month to month for several reasons: a bonus or commission pushes your annualised income into a higher tax bracket; your employer adjusts for under- or over-deduction from earlier months; you received a once-off allowance; or your medical aid tax credit changed. Your PAYE should remain consistent if your gross salary is fixed — if it fluctuates without explanation, ask your payroll department for a tax directive breakdown.

What does YTD mean on a payslip?

YTD stands for Year to Date — the running total of earnings or deductions from the start of the SARS tax year (1 April) to your current pay period. YTD figures let you track cumulative PAYE paid, total UIF contributions, and total earnings for the year. They are also what SARS uses when you submit your annual tax return.

Can my employer deduct money from my salary without telling me?

No. Section 34 of the Basic Conditions of Employment Act (BCEA) prohibits employers from making deductions from your remuneration unless you have agreed in writing, a court or arbitration award authorises it, or a law requires it (like PAYE and UIF). Any deduction that does not fall into one of these categories is unlawful. If you see an unexplained deduction, request a written explanation from your employer — and if unresolved, report it to the CCMA or Department of Labour.

How do I check if my PAYE deduction is correct?

Take your gross monthly salary, multiply by 12 to get your annual taxable income, look up the applicable SARS bracket, apply the marginal rate and subtract your rebate (R17,235 for under-65s in 2026/27), then divide by 12. The easiest method is to enter your gross salary into a PAYE calculator and compare the result to what appears on your payslip. A discrepancy of more than R50 per month warrants a query to your payroll department.

What is the difference between employee and employer UIF?

Both you and your employer each contribute 1% of your gross salary to UIF — so the total contribution is 2% of gross. Only your 1% (the employee share, capped at R177.12/month) appears as a deduction on your payslip. Your employer's matching 1% is their cost and is shown in the 'Employer Contributions' section for reference only — it does not reduce your net pay.