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Work out a wage
Enter what you pay and the hours worked. You see what your employee receives, what the job really costs you, and what the law asks of you because of it.
R5 940.00your employee receives
R6 060.00your actual cost this month
- Gross pay
- R6 000.00
- Hourly rate
- R34.62
- UIF you deduct
- R60.00
- UIF you add
- R60.00
- PAYE you deduct
- R0.00
What your employee gets
| Basic pay (173.3 hours) | R6 000.00 |
| Overtime at 1.5 times | R0.00 |
| Bonus or extra pay | R0.00 |
| Gross pay | R6 000.00 |
| Less PAYE | R0.00 |
| Less UIF (1%) | R60.00 |
| Paid to your employee | R5 940.00 |
What it costs you
| Gross pay | R6 000.00 |
| Your UIF (1%) | R60.00 |
| Skills Development Levy | R0.00 |
| Your total cost | R6 060.00 |
The Compensation Fund (COIDA) is charged once a year, based on your industry, so it is not included here.
What this means you need to do
- UIF Required
They work 173 hours a month, so UIF applies. Deduct R60.00, add R60.00 of your own, and pay R120.00 each month.
- PAYE Not yet
Their pay is below the income tax threshold, so there is no PAYE to deduct. If their pay rises above it, you must register with SARS.
- Skills Development Levy
No Skills Development Levy: it only applies once your total payroll is over R500 000 a year.
How it is worked out
- Hours in a month: hours a week × 52 weeks ÷ 12 months. A 40 hour week is 173.3 hours a month.
- Gross pay: basic pay, plus overtime at one and a half times the hourly rate, plus any bonus or extra pay.
- UIF: 1% deducted from the employee and another 1% from you, on pay up to R17 712 a month. It does not apply to anyone who works under 24 hours a month for you.
- PAYE: income tax on the SARS 2026/27 tables, for someone under 65. A bonus is taxed as the extra tax it adds to a year's pay.
- Skills Development Levy: 1% of pay, only if your whole payroll is over R500 000 a year.
An estimate for general information, not tax or legal advice. Check unusual cases with an accountant or the Department of Employment and Labour.