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Your payslip is one of the most important documents when it comes to working in South Africa, as it is written proof of your employment and shows you how the money you take home is calculated. Not all payslips look the same, but they should all have a number of basic items listed that you need to understand. Scorpion explains some common terms that you would find on your payslip to help you better understand the amount you take home at the end of each month.
There are three types of deductions –
This is the rate of payment agreed upon between you and your employer. It does not include bonuses or overtime.
This is the total salary package of the employee including all benefits. This is your pre-tax amount, it is not what you actually take home.
This is the amount that you actually earn before any deductions.
Commonly called your “take home salary”. This is the amount paid to you after all deductions, ie what is actually paid into your account.
This stands for “Pay-As-You-Earn”, which is the income tax that is deducted from your pay. Below are taxable components found on your payslip:
This is your contribution to the Unemployment Insurance Fund (UIF) paid by your employer every month. All employees, as well as their employers, are liable for these contributions. You will have the right to claim from the UIF in cases where you become unemployed after contributing to the UIF, or your company does not pay for maternity leave.
Understanding your payslip is the first step to your financial freedom! Knowing how much you earn, what your expenses are, as well as how much is being deducted from your salary, will put you in a better position to have control over your finances.
Not sure about a deduction on your payslip? Scorpion’s legal counsellors are eager to assist you. Interested in joining Scorpion? Click here.
You may also be interested in:
National minimum wage increase
Are loadshedding pay cuts fair?
Check if you are registered for UIF
We have a team of lawyers available to answer your legal questions every first Thursday of the month from 11:30 to 13:30 on the Scorpion Legal Protection Facebook page for free. Have your legal question answered on the spot at the Scorpion Live Q&A.
* This is only basic legal advice and cannot be relied on solely. This is not financial advice. Information is correct at the time of being sent to publishing.
Date added: 17 March 2023
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