How PAYE is calculated on your salary
Employers use SARS's annualising method: they multiply your monthly taxable pay by 12, apply the annual tax tables, subtract the rebates for your age, divide by 12 and then subtract your monthly medical tax credit. That's what this calculator does.
- Retirement contributions to a pension, provident fund or RA through payroll reduce taxable pay (up to 27.5%).
- Travel allowance: 80% is added to taxable pay for PAYE, or 20% if at least 80% of your travel is for business.
- Medical tax credit for 2026/27: R376 a month for you, R376 for your first dependant and R254 for each extra dependant.
UIF in 2026
You pay 1% of your salary to UIF and your employer pays another 1%. Contributions are capped at the ceiling of R17,712 a month, so the most you pay is R177.12 a month.
Take-home pay examples (2026/27, under 65, no deductions)
| Gross per month | PAYE | UIF | Take-home |
|---|---|---|---|
| R10,000 | R315 | R100 | R9,585 |
| R20,000 | R2,115 | R177.12 | R17,708 |
| R30,000 | R4,681 | R177.12 | R25,142 |
| R50,000 | R11,076 | R177.12 | R38,747 |
| R80,000 | R22,658 | R177.12 | R57,165 |
Frequently asked questions
How much tax do I pay on R20,000 a month?
About R2,115 PAYE a month in 2026/27 if you are under 65 with no deductions, plus R177.12 UIF. Take-home pay is about R17,708.
What salary is tax-free in South Africa?
Up to R8,250 a month (R99,000 a year) if you are under 65. Above that PAYE starts.
Why is my PAYE higher in my bonus month?
The bonus is added to your annual income and taxed at your marginal rate, so the month's PAYE jumps. Your annual tax is the same either way.
Does my employer pay UIF too?
Yes, your employer pays an equal 1%, plus SDL of 1% if the total payroll is over R500,000 a year.
Last updated 2026-10-10. Sources: SARS rates of tax for individuals, medical tax credit rates, interest exemption, capital gains tax and the rate-per-kilometre schedule on sars.gov.za.