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Example of Taxes Payable on a Typical South African Salary

Feb 19, 2025 | Tax Calculations for South African Employee

Set out below is the total cost to the company for a South African employee based on a gross remuneration of R20,000.00:

  • UIF Monthly Contribution: 1% employee deduction & 1% employer contribution, limited to a gross remuneration of R17,712.00.
    • On a gross remuneration of R20,000.00, the cost will be:
      • R177.12 deduction from the employee’s salary.
      • R177.12 contribution by the employer.
    • UIF is a government unemployment insurance fund that provides payouts to employees in case of retrenchment.
  • SDL Monthly Contribution: 1% employer contribution based on gross remuneration.
    • On a gross remuneration of R20,000.00, the cost will be:
      • R200.00 employer contribution.
    • SDL is the government skills development levy.
  • WCA Annual Contribution: Employer contribution of approximately 1% of annual gross remuneration.
    • On a gross remuneration of R20,000.00, the cost will be:
      • Around R2,400.00 employer contribution.
    • WCA (Workmen’s Compensation) is a government fund that contributes to employees’ medical expenses for job-related injuries.
    • This cost varies as the percentage contribution is announced annually.

Summary of Total Cost to Company for an Employee Earning a Monthly Gross Remuneration of R20,000.00

Monthly Costs:

  • R20,000.00 salary.
  • R177.12 UIF contribution.
  • R200.00 SDL contribution.

Total Monthly Cost: R20,377.12

Annual Costs:

  • R2,400.00 WCA contribution.

Total Annual Cost to Company: R246,925.44

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