1. What is PAYE in South Africa?

Definition: PAYE (Pay As You Earn) is the system used by SARS to collect income tax from employees' salaries each month.

Purpose: This calculator helps South African employees estimate their monthly tax deductions and net take-home pay.

2. How Does the PAYE Calculator Work?

The calculator uses South Africa's progressive tax formula:

Where:

• Income — Your gross monthly salary (ZAR)
• Threshold — Annual tax threshold divided by 12
• Tax Rate — Progressive rates from 18% to 45%
• Rebates — Primary rebate based on age

3. Importance of PAYE Calculation

Details: Understanding your PAYE helps with budgeting, financial planning, and ensuring correct tax deductions.

4. Using the Calculator

Tips: Enter your monthly gross income before deductions and select your age group for accurate rebate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What's included in PAYE?
A: PAYE includes normal income tax, UIF, and SDL contributions.

Q2: How often are tax brackets updated?
A: SARS typically announces new brackets in February budget speech.

Q3: Does this include medical aid credits?
A: No, this is a basic calculator. For precise calculations, consult SARS or a tax practitioner.

Q4: Why does age matter for PAYE?
A: Older taxpayers qualify for higher rebates and thresholds.

Q5: Is this calculator accurate for all situations?
A: It provides estimates. Actual PAYE may vary based on deductions, bonuses, and other factors.