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    13th cheque

    An annual bonus, taxed as normal remuneration on source code 3605.

    Full definition

    A 13th cheque (annual bonus) is a lump sum paid once a year, usually in December. It is fully taxable as normal remuneration and reported under SARS source code 3605. PAYE is calculated by spreading the bonus across the annualised income to avoid over-taxing in a single month.

    See also

    SARS source codes
    The 4-digit codes SARS uses on IRP5 certificates to classify each earning, deduction and contribution.
    PAYE
    Pay-As-You-Earn is the monthly income tax an employer withholds from each employee's salary and pays over to SARS.

    Automate 13th cheque in your payroll

    Payroll Africa handles 13th cheque calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Let payroll handle 13th cheque for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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