Understanding Your Payslip — What Every Deduction Means

If your employer does not give you a payslip, they are breaking the law. Ask for one in writing. If they refuse, report them to the Department of Labour on 0800 030 007.

This is your agreed monthly salary before anything is taken out. This is the amount in your employment contract. Everything else is calculated from this number.

Some employers pay extra amounts like a travel allowance (petrol money), a housing allowance, or a meal allowance. These are added to your basic salary. Note: some allowances are taxable.

If you worked extra hours beyond your contracted hours (usually 45 hours per week), you should be paid 1.5 times your normal hourly rate for those extra hours.

This is income tax that SARS requires your employer to deduct every month and pay to SARS on your behalf. The amount depends on your salary. Many people get some of this back as a refund when they file their annual tax return.

1% of your salary, up to a maximum of R177.12 per month. Your employer also pays 1% on top. This money funds your UIF if you lose your job, go on maternity leave, or get sick.

If your employer offers medical aid, your contribution is deducted from your salary. This is usually voluntary. The deduction reduces your taxable income — so it saves you some tax.

If you belong to a company pension or provident fund, your contribution (usually 5–10% of salary) is deducted. Like medical aid, this also reduces your taxable income.

Loan repayments (if you took a loan through your employer), garnishee orders (if a court ordered deductions for debt), uniform costs, or any other deductions you agreed to in writing.

Check these things every month: Does your name and ID number match? Are the deductions the same as last month (or can you explain why they changed)? Is your UIF contribution shown? Is the amount deposited into your bank account the same as the net pay shown?