South African payroll guides
Everything we know about running payroll in South Africa — SARS calculations, statutory deadlines, BCEA rules, software buying advice and free calculators. Written by the team that builds Payroll Africa and kept current with the 2025/26 tax year.
Start here — payroll fundamentals
If you are new to running payroll, read these in order.
Registration, gross to net, payslips, EMP201, EMP501 and IRP5 — the full cycle, step by step.
The five-step SARS method with worked examples for salaries, medical credits and bonuses.
1% plus 1% on the R17,712 ceiling — who contributes, who is excluded and how it is declared.
EMP201 by the 7th, interim and annual EMP501, IRP5, UI19 and COIDA — plus what late filing costs.
A six-point checklist covering compliance, real pricing, migration, security and support.
Where Excel payroll breaks, what it costs in penalties and POPIA risk, and when it is still fine.
Payroll software in South Africa
Buying guides for each kind of employer and each compliance requirement.
SARS-compliant cloud payroll software for South African businesses. Automatic PAYE, UIF, SDL, EMP201, EMP501 and IRP5. Trusted by SA employers. From R79/month.
EMP201 software that auto-calculates PAYE, UIF, SDL and ETI every month. Ready-to-submit EMP201 return in one click. SARS-compliant, from R79/month.
EMP501 reconciliation software for South African employers. Generates the bi-annual and annual EMP501 plus IRP5/IT3(a) certificates ready for SARS e@syFile Employer.
IRP5 software that generates SARS-compliant IRP5 and IT3(a) tax certificates for South African employees. Exports directly to e@syFile Employer. From R79/month.
The best cloud payroll software for South African businesses. SARS-compliant PAYE, UIF, SDL, EMP201, IRP5, WhatsApp payslips and free migration from Sage. From R79/month.
Looking for a SimplePay alternative? Payroll Africa is cheaper across all tiers, includes auto payroll runs, WhatsApp payslips and an AI assistant. Free migration in 24 hours.
An online payroll system for South African employers — run payroll in the browser, no installs or upgrades. PAYE, UIF, SDL, payslips and EMP201 from R79/month.
Affordable SARS-compliant payroll software for South African businesses. Transparent per-employee pricing from R79/month, no setup fees and no contract.
Automated payroll software for SA employers: scheduled pay runs, automatic PAYE, UIF and SDL, payslips emailed or WhatsApped, and EMP201 generated for you.
Payroll software built for South African small businesses and SMEs. PAYE, UIF, SDL, EMP201 and IRP5 handled automatically, payslips by email or WhatsApp. From R79.99/month.
Multi-client payroll software for South African accountants, bookkeepers and payroll bureaus. Unlimited companies, EMP201/EMP501, IRP5 exports, Xero and QuickBooks sync.
Cloud payroll software for South African employers. Run payroll from any browser or phone, automatic SARS tax table updates, encrypted data hosted for POPIA compliance.
Payroll management software for South African companies — approvals, payroll groups, leave, HR records, reporting and a full audit trail alongside SARS-compliant processing.
SARS and BCEA knowledge base
Deep references on each tax, levy and labour rule that touches a South African payslip.
Complete guide to PAYE (Pay As You Earn) in South Africa. 2025/26 SARS tax tables, rebates, thresholds, worked examples and how to calculate PAYE on any salary.
Complete guide to UIF (Unemployment Insurance Fund) in South Africa. 1% employee + 1% employer contribution, R17,712 ceiling, uFiling, benefits and claim procedures.
SDL (Skills Development Levy) explained for South African employers. 1% of leviable payroll, R500,000 threshold, SETA claims and mandatory grants.
COIDA guide for South African employers. Register with the Compensation Fund, submit the annual Return of Earnings (ROE), and understand employer assessments.
Employment Tax Incentive (ETI) explained. Qualifying employees, ETI value table, monthly claim on EMP201 and the extended 24-month claim period.
Full guide to BCEA leave in South Africa — 21 consecutive days annual leave, 30 sick days per 36-month cycle, 3 family responsibility days plus parental leave rules.
BCEA overtime guide — 1.5x weekday overtime, 2x Sunday time, double time on public holidays, night-shift allowance and the R254,371.67 threshold.
How to tax a 13th cheque or annual bonus in South Africa. The SARS annualisation method, source code 3605, and worked examples.
Fringe benefits explained — company car, low-interest loans, medical aid, right of use, subsistence and how to value each under the Seventh Schedule to the Income Tax Act.
The current South African National Minimum Wage — R27.58/hour from 1 March 2024, plus sectoral minima for domestic workers, farm workers, EPWP and learnerships.
BCEA notice period rules — 1 week, 2 weeks or 4 weeks depending on service. How to calculate notice pay, notice in lieu and pay-in-lieu on termination.
Severance pay under Section 41 of the BCEA — minimum one week per completed year of service, tax-free portion, IRP5 codes and worked examples.
The medical scheme fees tax credit (Section 6A) — R364 for main member, R364 for first dependant, R246 for each additional dependant. Applied against PAYE.
How provident, pension and retirement annuity funds work post the two-pot system. Contribution limits, tax deductibility and IRP5 source codes.
How a travel allowance is taxed in South Africa — 80% inclusion rate, SARS rate per kilometre, logbook requirements and reimbursive travel.
Legal payslip requirements under BCEA Section 33 — employer/employee identification, hours, rate, deductions, net pay. Plus WhatsApp payslip delivery.
Send payslips to employees via WhatsApp. POPIA-safe delivery with time-limited secure links. No email needed — perfect for blue-collar and field workforces.
Cloud payroll software in South Africa — no installs, automatic SARS updates, multi-user access, always-current tax tables and secure POPIA-compliant hosting.
Payroll outsourcing in South Africa — pros, cons, typical fees and how modern cloud payroll software often beats outsourcing on cost and control.
How to pay remote employees in South Africa — SARS tax residency, cross-border payroll, work-from-home allowance, expense reimbursements.
Complete guide to the UI19 form — what it is, when to submit it to the Department of Employment and Labour, how to fill in every field, and how Payroll Africa generates it automatically.
How payroll works in South Africa: registering with SARS, gross to net, PAYE, UIF and SDL, payslips, EMP201, EMP501 and IRP5 deadlines — explained step by step.
Step-by-step method for calculating PAYE on a South African salary: annualise, apply the SARS tax tables, subtract rebates and medical tax credits, divide by twelve.
How to calculate UIF: 1% employee plus 1% employer on remuneration capped at R17,712 per month. Worked examples, what counts as UIF remuneration and who is excluded.
Every South African payroll deadline: EMP201 by the 7th, EMP501 interim and annual reconciliations, IRP5 certificates, UI19, COIDA Return of Earnings and penalties for late filing.
A practical checklist for choosing payroll software in South Africa: SARS compliance, pricing, migration, support, security, integrations and the questions to ask before you sign.
Excel payroll versus payroll software in South Africa: compliance risk, SARS penalties, POPIA exposure, time cost and when a spreadsheet genuinely stops being viable.
Free payroll calculators
Check any figure in seconds against the current SARS tables and BCEA defaults.
Calculate SARS PAYE tax on a South African salary.
Work out monthly UIF for employee and employer.
Convert gross salary to net take-home pay.
Break a CTC package into salary, benefits and employer costs.
Calculate BCEA overtime, Sunday and public holiday pay.
Track annual, sick and family responsibility leave.
Full annual income tax calculator for individuals.
Work out BCEA notice periods and notice pay.
Estimate retrenchment severance pay under the BCEA.
Estimate IRP5 source codes and totals for the year.
Answers to common questions
Answers to the most common South African employer questions about PAYE, UIF, SDL, tax tables and monthly SARS payments.
How BCEA leave, overtime, notice periods and severance work in a South African payroll.
Everything about IRP5, IT3(a), source codes, the bi-annual EMP501 reconciliation and e@syFile Employer.
How to migrate from Sage Payroll, SimplePay, VIP or spreadsheets to Payroll Africa cleanly and free of charge.
Practical answers for South African SMEs, startups and sole proprietors running payroll for the first time.
How Payroll Africa's payslip templates, WhatsApp delivery and POPIA controls keep employers compliant.
How Payroll Africa integrates with Xero, QuickBooks Online and every major South African bank.
Answers for South African farms and packhouses running seasonal, mixed and clocking-system payroll.
Every South African payroll and SARS term, defined in plain language.
Tax table, UIF ceiling and labour law changes as they are published.
Twelve free modules taking you from payroll basics to year-end reconciliation.
Stop calculating by hand
Payroll Africa turns every calculation in these guides into an automated monthly run — SARS-aligned PAYE, UIF and SDL, payslips, EMP201 and IRP5 — from R79.99 per month with free migration.