The 30-second version: your payslip runs gross salary → deductions → nett pay (what lands in your bank). The standard deductions: PAYE (income tax your employer withholds for SARS based on the tax tables), UIF (1% of your salary, capped at R177.12 a month — your employer adds another 1% on top that doesn’t come from you), and then your voluntary or contractual items: pension or provident fund, medical aid, group life. By law your payslip must show the pay period, your details and your employer’s, gross pay, and each deduction itemised.
Payslip errors are genuinely common, so checking yours once is one of the better-paying half-hours in personal finance. If you’ve ever wondered why a R20,000 “cost to company” becomes R15-something in the bank — here’s every line, and the errors to hunt.
The earnings side
- Basic salary — your contracted pay
- Allowances — travel, cellphone, housing. Allowances are mostly taxable; a travel allowance is typically taxed on a portion of its value via PAYE unless you keep a logbook proving heavy business use. Logbook keepers often score at tax season — see the eFiling guide
- Overtime — the BCEA sets overtime at premium rates for employees within its earnings threshold. If you work it, check it’s on the slip at the right rate
- Bonus or 13th cheque — taxed in the month received, which is why bonus months feel over-taxed. That’s annualisation maths, not theft
- Cost to company versus basic: CTC bundles employer contributions (their medical and pension share) into one number — which is why your “package” and your gross differ before deductions even start
The deductions side, line by line
PAYE (Pay As You Earn). Income tax on the sliding scale, withheld monthly. Two built-in reliefs mean lower earners pay little or nothing: everyone gets the primary rebate, which creates a tax threshold — earn under it across the year and PAYE should be zero. If you’re a genuinely low earner seeing PAYE deducted, question it. Thresholds and brackets update in each February Budget.
UIF. 1% of remuneration, capped: salary is capped at R17,712 a month for the calculation, so the maximum deduction is R177.12. If your slip shows more, it’s an error. This 1% is what makes you claimable when retrenchment, maternity or illness hits — see the UIF guide. Also verify your employer declares you, not just deducts.
Pension or provident fund. Your retirement savings — and a tax break: contributions are deductible up to 27.5% of income within the annual cap, which quietly reduces your PAYE. Know your fund and your percentage. Since the two-pot system, part of contributions builds an accessible savings component, though withdrawals are taxed at your marginal rate, so emergency-only thinking applies.
Medical aid. If deducted via payroll, your PAYE should reflect the medical scheme fees tax credit — a fixed monthly credit per member and dependant (for 2026/27: R376 a month for each of the first two beneficiaries, R254 for each additional). If you pay medical aid privately, that credit typically arrives via your tax return instead — one of the most-missed refunds in the country.
Group life and income protection — employer-scheme cover; know your multiple. Court-ordered debt deductions (emoluments attachment orders) have legal limits and require a valid court order. If one appears mysteriously, get the order details immediately — see your debt rights.
The 5 errors to actually check for
- UIF over R177.12, or calculated on your full salary above the cap — an instant red flag
- Tax number missing or wrong (misfiled PAYE haunts you at SARS), or PAYE deducted with no IRP5 issued at year-end. The IRP5 is your proof of tax paid; no IRP5 means your tax season breaks
- Medical credit not applied while medical aid is deducted via payroll — you’re overpaying PAYE every month
- Overtime hours or rate wrong — keep your own hours record for one month and compare
- Deductions you never agreed to — unexplained “admin,” “uniform,” or scheme deductions. Employers may not deduct arbitrarily without your agreement or a legal basis
📥 Free download: Payslip Decoder Sheet — print it next to your payslip: every line explained, the five error checks, and a “questions for HR” script for when something’s off. Get the free download → (email required — we send the download link plus a short, useful tip series; unsubscribe anytime).
FAQ
Why did my nett pay drop this month?
Usual suspects: bonus-month tax, medical or pension annual increases, a new court-ordered deduction, or crossing a tax bracket after a raise. Compare the two slips line by line.
My employer pays cash with no payslip — is that legal?
You’re entitled to a payslip. No payslip usually also means no UIF declaration and no IRP5 — which means no UIF claim and tax problems later. Payslips protect you; ask, and involve the Labour Centre if refused.
Is my payslip proof of income?
Yes — for bonds, rentals and accounts. Three months of slips plus bank statements is the standard pack, which is another reason errors matter.
Gross or nett for budgeting?
Always budget on nett — the number that actually lands. See How to Budget in South Africa.
Next step
Your payslip is where your money story starts. The Money Reset Pack (R99) includes this decoder plus the budget system built on your real nett pay. 🛒 Get the Money Reset Pack →
Related: How to Budget in SA · How to Claim UIF · SARS eFiling Guide
Educational content, not tax advice. Figures per the 2026/27 Budget; brackets and credits update each February. Last verified August 2026. Report an error