Your payslip is a record of what you earned, what was deducted and why. Reading it properly every month helps you catch mistakes, understand your real take-home pay and keep the records you need for tax and for claims such as UIF.
Earnings
- Basic salary — your fixed monthly pay before anything is added or deducted.
- Allowances — for example a housing, travel or cellphone allowance. Some are taxable.
- Overtime, commission and bonuses — variable pay for the month.
- Gross pay — the total of all of the above.
Compulsory deductions
- PAYE (Pay As You Earn) — income tax that your employer deducts and pays to the South African Revenue Service (SARS) on your behalf. The amount depends on your taxable income and tax rebates. If you earn below the annual tax threshold, no PAYE is deducted.
- UIF — your 1% contribution to the Unemployment Insurance Fund, matched by your employer. See how to claim UIF.
Other common deductions
- Pension or provident fund — your contribution to retirement savings. Many employers also contribute on your behalf.
- Medical aid — your share of the medical scheme premium, if you belong to one through work.
- Union fees, funeral cover or other deductions you have agreed to in writing.
- Garnishee orders — court-ordered deductions to repay a debt.
Your employer may not make deductions you have not agreed to, except those required by law or by a court order.
Net pay
Net pay is what is paid into your bank account: gross pay minus all deductions. When you compare job offers, remember that a salary quoted as "gross" or "cost to company" will be noticeably higher than your net pay.
Employer contributions
Some payslips also show what your employer pays on your behalf, such as its UIF contribution, the Skills Development Levy or its share of pension and medical aid. These are not deducted from your pay, but they are part of what you cost the employer — which is why "cost to company" figures include them.
What to check every month
- Your name, employee number and tax number are correct.
- Your basic salary matches your contract.
- Overtime and leave days are recorded correctly.
- UIF is being deducted — if not, ask why.
- There are no deductions you do not recognise.
Keep your payslips
Save every payslip, as a PDF or a photo. You need them for loan and rental applications, for UIF claims and to check your annual tax certificate (IRP5), which your employer issues after the end of each tax year (1 March to the end of February).
Thinking about a new job? Our guide to negotiating your salary explains how to compare offers properly.