Payroll guide · South Africa
Everything an employer needs to run compliant payroll in South Africa — PAYE bands, statutory deductions, the computation order, filing deadlines and the mistakes that most often surface in an audit.
South African payroll is the most mature system covered in this series, and the one with the most moving parts: a seven-bracket table, age-based rebates deducted from the tax rather than from income, medical scheme credits, and three separate submissions on one monthly form.
This guide covers the 2026/27 brackets, the rebate structure, UIF with its new earnings ceiling, SDL and the EMP201 filing cycle.
The figures below are compiled from public guidance and are correct to the best of our research at the time of writing. South Africa rates change with each budget cycle, and published sources sometimes disagree. Confirm against the South African Revenue Service (SARS) before running a live payroll.
Payroll obligations in South Africa are administered by the South African Revenue Service (SARS), alongside the social security and levy bodies set out below. Every employer is responsible for computing deductions correctly, remitting them on time and retaining the records — the obligation sits with the employer, not the employee, and it does not transfer to a bookkeeper or an accountant.
| Chargeable income (ZAR) | Rate |
|---|---|
| 0 – 245,200 | 18% |
| 245,201 – 383,100 | 26% |
| 383,101 – 530,200 | 31% |
| 530,201 – 695,900 | 36% |
| 695,901 – 887,100 | 39% |
| 887,101 – 1,878,800 | 41% |
| Above 1,878,800 | 45% |
Annual taxable income in ZAR for the 2026/27 year of assessment, 1 March 2026 to 28 February 2027. Brackets were raised 3.4% in Budget 2026. Confirm against the official SARS table before use.
| Deduction | Employee | Employer | Rules |
|---|---|---|---|
| UIF | 1% | 1% | Capped at the first ZAR 17,712 of monthly remuneration, so a maximum of ZAR 177.12 each side. The ceiling rose from ZAR 14,872 on 1 March 2026. |
| Skills Development Levy | — | 1% | On total payroll. Employers with an annual payroll below ZAR 500,000 are exempt. |
| Retirement fund contributions | Up to 27.5% | — | Deductible up to 27.5% of the greater of remuneration or taxable income, capped at ZAR 430,000 a year. |
Our free calculator applies every deduction on this page — including lower earnings limits and relief caps — and shows the PAYE working band by band.
Open the South Africa calculator| Relief | Value | Notes |
|---|---|---|
| Primary rebate | ZAR 17,820/year | Every taxpayer under 65. Deducted from the calculated tax, not from income. |
| Secondary rebate | ZAR 9,765/year | Additional, ages 65 to 74. |
| Tertiary rebate | ZAR 3,249/year | Additional, age 75 and over. |
| Tax threshold | ZAR 99,000/year | Under 65. ZAR 153,250 for 65 to 74 and ZAR 171,300 for 75 and over. |
| Medical scheme credit | ZAR 376/month | Main member and first dependant; ZAR 254 for each additional dependant. |
Getting the order right matters more than getting any single rate right. Applying a deduction after the bands instead of before it changes the tax for every employee on the payroll.
Annualise gross remuneration and subtract allowable deductions such as retirement fund contributions. Apply the bracket table to arrive at gross tax. Subtract the age rebate — primary, secondary or tertiary — and any medical scheme tax credits. Divide by twelve for the monthly PAYE deduction. UIF is calculated separately at 1% of remuneration up to the ceiling.
An employee on ZAR 30,000 a month gross:
Employer cost on top of gross: UIF at 1% capped (177.12) and SDL at 1% (300.00) — a total cost of employment of ZAR 30,477.12. No medical credits assumed.
| When | What is due |
|---|---|
| By the 7th of the following month | EMP201 submitted and PAYE, UIF and SDL paid to SARS |
| By 31 May | Employer interim reconciliation, EMP501, for the six months to February |
| By 31 October | Employer interim reconciliation for the six months to August |
| Annually | IRP5 certificates issued to employees |
SARS charges a 10% penalty on late payment of PAYE, UIF or SDL, plus interest, and administrative penalties for late EMP201 or EMP501 submission. Reconciliation differences between EMP201 filings and the EMP501 are a common trigger for a payroll audit.
These are the errors that turn up most often when a manual payroll is reviewed.
Our ROI calculator prices what manual payroll actually costs — the days lost at month-end, the leave nobody recorded, and the statutory penalty exposure you are already carrying.
Open the ROI calculatorSeven brackets running from 18% to 45%, applying to the year of assessment from 1 March 2026 to 28 February 2027. Brackets were raised 3.4% in Budget 2026. Always confirm against the official SARS table.
ZAR 17,820 a year for taxpayers under 65, deducted from calculated tax. Those aged 65 to 74 get a further ZAR 9,765 and those 75 and over a further ZAR 3,249.
UIF is 1% from the employee and 1% from the employer on the first ZAR 17,712 of monthly remuneration, so ZAR 177.12 each side at most. The ceiling rose from ZAR 14,872 on 1 March 2026.
Employers with an annual payroll below ZAR 500,000. SDL is otherwise 1% of total payroll and is an employer-only levy.
The monthly declaration to SARS covering PAYE, UIF and SDL, due by the 7th of the following month. EMP501 is the twice-yearly reconciliation.
ZAR 99,000 a year if under 65, ZAR 153,250 for ages 65 to 74 and ZAR 171,300 for 75 and over, for the 2026/27 year.
CromaHR computes every deduction on this page automatically, with rates that are effective-dated — so a retrospective run uses the rates in force for that period rather than today's. Returns are generated in the formats the South African Revenue Service (SARS) actually accepts, and every run leaves a complete audit trail.
Because the platform was designed by a Certified Internal Auditor, the controls came first: maker-checker approval on payroll runs, role-based permissions, and a record of every change showing who made it, when, and what the value was before and after.
CromaHR supports payroll in 36+ countries. These guides cover the markets our customers ask about most.
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