How is PAYE calculated in South Africa?

PAYE is calculated monthly and paid to SARS by your employer monthly, even if you are paid weekly / fortnightly. … This is then divided again by the same work period to get the monthly PAYE tax which is then withheld, displayed on your IRP5 and paid over to SARS.

How is PAYE tax calculated in South Africa?


  1. Year-to-date regular income = R10,000.
  2. Annual equivalent = R10,000 x 12/1 = R120,000.
  3. Tax calculated on R120,000 as per tax tables = R7,533.
  4. PAYE payable on regular income = R7,533 x 1/12 = R627.75.

How is PAYE calculated?

For the basic rate (currently between £12,501 – £50,000), you’ll be charged 20%, for higher rate (anything between £50,001 – £150,000), you’ll be charged 40%, and for additional rate (£150,001+), you’ll pay 45%. So, for example, if you earn £52,000 per year, you will pay: £0 on the first £12,500.

What is the PAYE percentage in South Africa?

2017 tax year (1 March 2016 – 28 February 2017)

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​Taxable income (R) ​Rates of tax (R)
1 – 188 000 18% of taxable income
188 001 – 293 600 33 840 + 26% of taxable income above 188 000
293 601 – 406 400 61 296 + 31% of taxable income above 293 600
406 401 – 550 100 96 264 + 36% of taxable income above 406 400

Is PAYE calculated on gross or net salary?

1. Computing gross annual salary. When calculating PAYE, start by computing the total annual or gross salary/income inclusive of benefits before any deductions.

What is a good salary in South Africa?

A good salary in South Africa can be different for different people. What is the range of salaries in South Africa? Salaries in South Africa range between R7,880 to R139,000 monthly. The two figures are the minimum and maximum wages in the pay scale South Africa respectively.

How much tax is deducted from my salary in South Africa?

Your average tax rate is 13.0% and your marginal tax rate is 26.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of R 100 in your salary will be taxed R 26, hence, your net pay will only increase by R 74.

How do I calculate monthly PAYE?

PAYE = (Total tax payable – total rebates) / 12

Let’s look at an example: Sipho is 29 years old and in 2017/2018 tax year earns a fixed monthly salary of R20 000. His provident fund contributions total R2000 per month and he receives a R1000 monthly travel allowance.

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How much PAYE should I be paying?

You pay 0% on any earnings up to £12,500. You pay 20% on anything between £12,501 – £50,000. You pay 40% on earnings between £50,001 – £150,000. You pay 45% on anything you earn over £150,001.

Do I have to pay PAYE?

PAYE is HM Revenue and Customs’ ( HMRC ) system to collect Income Tax and National Insurance from employment. You do not need to register for PAYE if none of your employees are paid £120 or more a week, get expenses and benefits, have another job or get a pension. However, you must keep payroll records.

How much must I earn to pay PAYE South Africa?

If you earn more than R6 312.50 (2017: R6 250) per month, you are liable to pay PAYE on a sliding scale. Susie earns R10 000 per month before deductions.

How much do you need to earn to pay tax in South Africa 2020?

For the 2020/21 tax year, if you are younger than 65 years of age and your annual taxable income (gross income minus deductions) is below the threshold of R83 100, you do not pay tax. If you are 65 or older, the tax threshold is R128 650, and if you are 75 or older, the threshold is R143 850.

How is UIF pay calculated?

UIF Contributions

UIF is calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer.

What percentage is PAYE?

Tax thresholds, rates and codes

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PAYE tax rates and thresholds 2018 to 2019
UK basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £34,500
UK higher tax rate 40% on annual earnings from £34,501 to £150,000
UK additional tax rate 45% on annual earnings above £150,000

How much does PAYE cost an employer?

Costs of employment

Employer’s NICs of 13.8% on any salary above the National Insurance Secondary threshold (although you may be able to reduce this using the government’s Employment Allowance)

How much tax do you pay in South Africa?

Income tax rates in South Africa

​Taxable income (R) ​Rates of tax (R)
Up to R205,900 18% of taxable income
R205,901–R321,600 R37,062 + 26% of taxable income above R205,900
R321,601–R445,100 R67,144 + 31% of taxable income above R321,600
R445,101–R584,200 R105,429 + 36% of taxable income above R445,100
Hai Afrika!