Salary Calculator
South Africa
The Native Teams’ salary calculator is a nifty tool that allows you to calculate the salary costs in South Africa within seconds. Quickly determine how much you’d have to pay for taxes, social security contributions, and healthcare. Use these insights when planning your global hiring strategy and make smarter decisions.
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How does a salary calculator for South Africa work?
Navigating the salary calculator for South Africa requires only a few clicks on your end — the country of employment, employee role, and gross salary. Once you’ve clicked on the calculate button, the calculator does its magic in the background. It deduces the salary contributions and taxes from the gross amount and presents you with the net salary. This is the amount the employee will receive in their bank account.
What is the salary cost in South Africa?
Employer payroll contributions in South Africa include several mandatory payments. The Skills Development Levy (SDL) is set at 1.00% of the employee's earnings, with a maximum contribution limit of 212,544 ZAR. Similarly, Unemployment Insurance (UIF) requires employers to contribute 1.00% of the employee’s earnings, also capped at 212,544 ZAR.
In addition, employers must contribute to the Workers Compensation Fund (OID), which varies depending on the employee's earnings, the type and field of work, and the associated risks.
Employees are also responsible for contributing to Unemployment Insurance (UIF) at a rate of 1.00% of their earnings, with a maximum contribution limit of 212,544 ZAR.
How much tax do you have to pay in South Africa?
South Africa has a progressive tax system, so the tax rate depends on the income level. Below are the tax rates as of 2025:
-18% for up to 237,100 ZAR.
-42,678 ZAR + 26% for 237,101 – 370,500 ZAR (on income above 237,100 ZAR).
-77,362 ZAR + 31% for 370,501 – 512,800 ZAR (on income above 370,500 ZAR).
-121,475 ZAR + 36% for 512,801 – 673,000 ZAR (on income above 512,800 ZAR).
-179,147 ZAR + 39% for 673,001 – 857,900 ZAR (on income above 673,000 ZAR).
-251,258 ZAR + 41% for 857,901 – 1,817,001 ZAR (on income above 857,900 ZAR).
-644,489 ZAR + 45% for above 1,817,001 ZAR.
What are the mandatory employee benefits in South Africa?
Employees in South Africa are entitled to at least 21 consecutive days (15 working days) of annual leave per year. Plus, they receive 1 day of sick leave for every 26 days worked, with a minimum of 30 days paid sick leave over a 3-year cycle. Family responsibility leave allows employees to take up to 3 days per year for family emergencies.
Another important benefit is parental leave. Maternity leave can extend up to 4 months, with benefits available from the Unemployment Insurance Fund (UIF) if the employee has contributed for at least 13 weeks. Paternity leave, though not as extensive, is also recognised. The UIF itself is a crucial benefit, requiring both employers and employees to contribute 1% each. This fund provides financial support during periods of unemployment.
Employers are also mandated to provide workers compensation for any work-related injuries or illnesses. Furthermore, employers must contribute to retirement funding, such as pension or provident funds, to support employees' long-term financial security.
Additionally, employers must adhere to overtime regulations, which require overtime pay at 150% of the standard rate unless an alternative agreement is made with the employee.
Are there any other benefits or additional expenses?
One of the most common non-mandatory benefits is healthcare coverage. While the public healthcare system exists, many employers offer private health insurance to ensure their employees can access better medical care.
Retirement funds and pension schemes are also frequently offered as part of a competitive benefits package. Another popular benefit is the 13th-month bonus, which is typically paid at the end of the year and equals one month's salary. Employers often use this bonus to reward their employees for their hard work throughout the year.
What is the difference between Gross and Nett in the South Africa salary calculator?
In the South African salary calculator, gross salary refers to the total amount an employee earns before deductions. This figure includes the employee’s basic salary, bonuses, overtime pay, and other forms of compensation. Gross salary is the starting point for calculating various statutory deductions, such as income tax, unemployment insurance (UIF), and other employer and employee contributions.
Nett salary, or take-home pay, is the amount an employee receives after all mandatory and voluntary deductions are subtracted from the gross salary.
How can Native Teams help with employment, salary and taxes in South Africa?
Native Teams offers solutions to simplify employment, payroll, and tax management in South Africa. Whether you’re handling salary calculations, managing taxes, or overseeing employee benefits, our platform provides the tools to make the process easy. With our services, you can count on timely, precise salary payments and reduced administrative hassle. Stay compliant, streamline your operations, and let us handle the complexities for you.
