SARS & Tax
PAYE
Pay-As-You-Earn is the monthly income tax an employer withholds from each employee's salary and pays over to SARS.
Full definition
PAYE (Pay-As-You-Earn) is the system SARS uses to collect income tax from South African employees at the point their salary is paid. The employer calculates each employee's PAYE using the current SARS tax tables, deducts it from gross pay, and pays the total over to SARS on the monthly EMP201 return by the 7th of the following month.
Example
An employee earning R25,000 per month in the 2026/27 tax year would have roughly R3,073 PAYE deducted after the primary rebate.
See also
EMP201
The monthly employer return to SARS declaring PAYE, UIF, SDL and ETI due for the payroll period.
IRP5
The annual tax certificate SARS requires an employer to issue to every employee whose earnings were taxable.
Primary rebate
A fixed annual amount SARS subtracts from every individual's PAYE — R17,820 for the 2026/27 tax year.
SARS
The South African Revenue Service — the tax authority collecting PAYE, UIF and SDL from employers.
Automate PAYE in your payroll
Payroll Africa handles PAYE calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.
Browse the full South African payroll glossary — 55 terms explained.