Net Salary Formula:
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Definition: This calculator determines your take-home pay after all statutory deductions in South Africa.
Purpose: It helps employees and employers understand how much salary will be received after mandatory deductions.
The calculator uses the formula:
Where:
Details: Understanding net salary helps with budgeting, financial planning, and ensuring correct salary payments.
Tips: Enter your gross salary (ZAR), tax amount, UIF contribution, and any other deductions. All values must be ≥ 0.
Q1: How is PAYE tax calculated in South Africa?
A: PAYE is progressive based on tax brackets. For accurate tax amounts, use SARS tax tables or a tax calculator.
Q2: What's the UIF contribution rate?
A: Typically 1% of gross salary (capped at R177.12 per month as of 2023).
Q3: What are common "other deductions"?
A: These may include pension fund contributions, medical aid, union fees, or garnishee orders.
Q4: Does this calculator include bonuses or overtime?
A: No, you should include these in your gross salary if they're part of your regular earnings.
Q5: How often should I recalculate my net salary?
A: Whenever your gross salary changes, tax laws update, or your deductions are modified.