Your First Payslip Explained: PAYE, UIF and Take-Home Pay (South Africa)

Photo: Mikhail Nilov / Pexels

Your first payslip has more lines on it than you expected, and your take-home pay is smaller than the salary you were offered. That's normal. Here is what each line means, and what to check so you know your pay is right.

Gross pay and net pay

Gross is the salary you were offered, before anything is taken off. Net (take-home) is what lands in your bank account after deductions. The difference is mostly income tax and UIF, plus medical aid or retirement contributions if you've signed up for them.

By law, your employer must give you a payslip every payday. Under section 33 of the Basic Conditions of Employment Act (BCEA), it must show the employer's name and address, your name and occupation, the period you're being paid for, your pay, the amount and purpose of every deduction, and the actual amount paid to you.

The deductions you'll see

PAYE (income tax)

PAYE stands for Pay As You Earn. Your employer takes income tax off your pay each month and pays it to SARS for you. The tax year runs from 1 March to the end of February.

For 2026/27, income tax is worked out in bands. Each rand is taxed at the rate of the band it falls in:

Then a rebate is taken off. Everyone under 65 gets a primary rebate of R17,820 a year. That's why the first R99,000 is tax-free: 18% of R99,000 is exactly R17,820, so the rebate cancels the tax on it.

UIF (Unemployment Insurance Fund)

UIF is a small safety net. You pay 1% of your pay and your employer adds another 1%. The fund gives short-term relief if you lose your job, or can't work because of maternity, adoption or parental leave, or illness. Contributions are calculated on earnings up to R17,712 a month, so the most you'll pay is R177.12 a month. Your employer pays it over to SARS.

Medical aid and retirement

These only appear if you've joined your employer's medical scheme or retirement fund. If you're on a medical scheme, you get a monthly tax credit that lowers your PAYE. For 2026/27 it's R376 a month for each of the first two people on the scheme (you and one dependant), and R254 for each additional dependant.

A worked example

These examples are simplified: no medical aid, no retirement fund, and rounded to the nearest rand.

Salary of R15,000 a month

• Yearly income: R15,000 × 12 = R180,000
• Tax before rebate: 18% of R180,000 = R32,400
• Less the primary rebate: R32,400 − R17,820 = R14,580 a year
• PAYE per month: R14,580 ÷ 12 = R1,215
• UIF: 1% of R15,000 = R150
• Take-home pay: R15,000 − R1,215 − R150 = R13,635

Salary of R8,000 a month

• Yearly income: R96,000, which is under the R99,000 threshold, so PAYE is R0
• UIF: 1% of R8,000 = R80
• Take-home pay: R7,920

What to check on every payslip

1. Your details. Your name and job title are right, and the pay period is correct.
2. Gross pay. It matches what your offer letter or contract says.
3. Every deduction has a name and a purpose. If you don't recognise one, ask.
4. PAYE and UIF look sensible. Use the example above to see if the numbers are in the right range.
5. Net pay matches your bank deposit.

Keep your payslips. You'll need them at tax time and if you ever apply for a loan or a rental.

If something looks wrong

Start with your payroll or HR team. Most mistakes are simple and get fixed quickly. If you can't get an answer, you can take the problem to the Department of Employment and Labour.