PAYE (Pay As You Earn) is income tax deducted from your salary by your employer each month. It's calculated using SARS tax brackets based on your annual taxable income, then tax rebates are applied to reduce the amount. The calculation considers your total annual income divided by 12 for monthly deductions.

UIF is 1% of your gross salary, but it's capped at earnings of R14,760 per month (R177,120 annually). So the maximum UIF you'll pay is R147.60 per month. Your employer also contributes 1%, making the total contribution 2% (1% from you, 1% from employer).

Yes, pension fund and retirement annuity (RAF) contributions are tax deductible. You can deduct up to 27.5% of your taxable income or R350,000 per year, whichever is lower. This reduces your taxable income, which in turn reduces the amount of tax you pay.

Your effective tax rate is the average rate you pay on your total income (total tax ÷ total income). Your marginal tax rate is the rate you pay on the next rand you earn. For example, if you're in the 31% bracket, your marginal rate is 31%, but your effective rate might be 22% because lower income is taxed at lower rates.

Medical aid tax credits are monthly credits (not deductions) that reduce your tax liability. For 2025, you get R364/month for yourself as main member, R364/month for your first dependent, and R246/month for each additional dependent. These are subtracted directly from your tax amount, not from your taxable income.

No, SARS deems 20% of your travel allowance as business use, so only 80% is taxable. However, you can claim higher business use by keeping a detailed logbook and submitting it with your tax return. This calculator uses the standard 80% taxable assumption.

Not necessarily, but it's often beneficial to do so. You should submit a tax return if you have additional income, claimable deductions (medical expenses, travel costs, donations), or if you're claiming medical aid tax credits beyond what your employer processed. Many people get refunds by submitting returns even when PAYE was deducted.

Differences can occur due to: employer-specific benefits, bonuses, overtime, different medical aid arrangements, other deductions (garnishee orders, union fees), or if your employer uses different tax tables. This calculator provides estimates based on standard SARS rates. Always verify with your HR/payroll department for exact figures.

The salary increase comparison tool helps you understand the real financial impact of a raise or promotion. You can enter either a percentage increase (if your company offers a % raise) or a specific amount increase (if you're negotiating a fixed amount).

How it's measured:

• The calculator applies your increase to your current gross salary
• It recalculates PAYE based on the new higher income using 2025 SARS tax brackets
• UIF and other deductions are recalculated on the new salary amount
• Your new effective tax rate is calculated (often higher due to progressive tax)
• The comparison shows both the gross increase and net take-home increase

Key insight: Due to South Africa's progressive tax system, you don't keep 100% of your raise. If you move into a higher tax bracket, a larger portion goes to SARS. The comparison shows exactly how much you'll actually take home after all deductions.

Let's say you earn R30,000/month and get a 7% increase:

• Gross increase: R30,000 × 7% = R2,100 more per month
• New gross salary: R32,100
• Additional tax: Approximately R735/month (at 35% marginal rate)
• Additional UIF: R21/month
• Net take-home increase: Approximately R1,344/month (64% of gross)

Use the salary increase comparison tool with your actual figures to see your precise impact. Enter "7" in percentage mode to see exactly how much additional tax you'll pay and what your real net increase will be.

This calculator is invaluable for salary negotiations. First, calculate your current take-home pay. Then use the salary increase comparison to test different scenarios:

• Enter the percentage your employer is offering to see the real net benefit
• Work backwards: enter the net amount you need and see what gross increase to request
• Compare different increase amounts to find a realistic target
• Show your employer the tax impact when discussing the increase
• Consider non-monetary benefits if the tax impact is too high

Pro tip: If you're close to a tax bracket threshold, sometimes it's better to negotiate benefits (company car, medical aid, pension contributions) instead of pure salary, as these can be more tax-efficient.