What this page covers
Three separate deductions come off a South African payroll, each with its own rate, ceiling and return. A trader running a company with even one employee is in all three systems.
| Item | Employee pays | Employer pays | Ceiling |
|---|---|---|---|
| PAYE | At the individual tax tables | Nothing | None |
| UIF | 1% of remuneration | 1% of remuneration | R17,712 a month |
| SDL | Nothing | 1% of total payroll | None, but exempt below R500,000 a year |
| ETI | Nothing | A credit against PAYE | Qualifying employees only |
| Monthly salary | Employee 1% | Employer 1% | Total |
|---|---|---|---|
| R10,000 | R100.00 | R100.00 | R200.00 |
| R17,712 | R177.12 | R177.12 | R354.24 |
| R25,000 | R177.12 | R177.12 | R354.24 |
| R50,000 | R177.12 | R177.12 | R354.24 |
| Return | Covers | Due |
|---|---|---|
| EMP201 | Monthly PAYE, UIF and SDL | 7th of the following month |
| EMP501, interim | March to August | End of October |
| EMP501, annual | March to February | End of May |
| IRP5 to employees | The tax year | With the annual reconciliation |
| UI-19 | Employee changes | 7th of the following month |
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Every table on this page as a spreadsheet, with the source and the date it was checked in the header rows.
⬇ Download CSVHow these figures work
The figures on this page come from the body that publishes them and change on a schedule rather than continuously, which is what makes them worth keeping in one place. UIF is capped at a remuneration of R17,712 a month, so the contribution stops rising above R177.12 each from employer and employee.
SDL only applies once total annual payroll exceeds R500,000, which exempts most one or two person companies.
★ What this means in practice
A director of a private company is treated as an employee for PAYE. Paying yourself only in dividends to avoid this attracts attention.
✕ Common mistakes
- UIF is capped at a remuneration of R17,712 a month, so the contribution . UIF is capped at a remuneration of R17,712 a month, so the contribution stops rising above R177.12 each from employer and employee.
- SDL only applies once total annual payroll exceeds R500,000, which exemp. SDL only applies once total annual payroll exceeds R500,000, which exempts most one or two person companies.
- A director of a private company is treated as an employee for PAYE. A director of a private company is treated as an employee for PAYE. Paying yourself only in dividends to avoid this attracts attention.
- Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.
Notes on reading these figures
- UIF is capped at a remuneration of R17,712 a month, so the contribution stops rising above R177.12 each from employer and employee.
- SDL only applies once total annual payroll exceeds R500,000, which exempts most one or two person companies.
- A director of a private company is treated as an employee for PAYE. Paying yourself only in dividends to avoid this attracts attention.
To put these figures to work, The PAYE and Take-Home Pay Calculator runs the arithmetic on your own numbers; Company Tax Rates Reference covers the same ground in ordinary language; Trading through a company goes into the detail this table only summarises; SARS Income Tax Tables is the related figure worth reading beside it; and Provisional Tax Deadlines covers what this page leaves out.
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Terms used on this page
Frequently asked questions
What is the UIF ceiling?
Contributions are capped at remuneration of R17,712 a month, so the maximum is R177.12 each from employer and employee.
When is SDL payable?
Once total annual payroll exceeds R500,000. Below that the employer is exempt.
When is EMP201 due?
By the 7th of the month following the month it covers.
Am I an employee of my own company?
For PAYE purposes a director of a private company is treated as an employee, so PAYE applies to what you draw.
Can I pay myself only in dividends?
You can, but SARS looks closely at a director with no remuneration, and the combined tax is usually higher anyway.
What is the ETI?
The employment tax incentive, a credit against PAYE for employing qualifying younger workers.