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 2026/27 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 R90/month.
EMP201 software that auto-calculates PAYE, UIF, SDL and ETI every month. Ready-to-submit EMP201 return in one click. SARS-compliant, from R90/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 R90/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 R90/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 R90/month.
Affordable SARS-compliant payroll software for South African businesses. Transparent per-employee pricing from R90/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.
How payroll works in South Africa: PAYE, UIF, SDL, ETI, EMP201, EMP501 and IRP5 explained, with statutory rates, deadlines, payslip rules and software options.
Compare the payroll software South African employers use — Payroll Africa, SimplePay, Sage, PaySpace and free options — on SARS compliance, features and price.
Payroll software built for South African small businesses and SMEs. PAYE, UIF, SDL, EMP201 and IRP5 handled automatically, payslips by email or WhatsApp. From R90/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.
Step-by-step guide to claiming UIF in South Africa: who qualifies, the documents you need, how to claim on uFiling or at a labour centre, how much you get and how long payment takes.
How South Africa's two-pot retirement system works: the savings, retirement and vested components, withdrawal tax, and what employers must change on the payroll and on IRP5s.
Employee self-service software for South African employers: payslips, IRP5s, leave applications and profile updates through a secure portal or WhatsApp. Included from R90/month.
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. 2026/27 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 R261,748.45 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 South African National Minimum Wage explained: the general hourly rate, sectoral minima for domestic, farm and EPWP workers, how to convert it to a monthly salary, and the penalties for underpaying.
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) — R376 for main member, R376 for first dependant, R254 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.
The EMP201 is due by the 7th of the month following the payroll month, or the last business day before the 7th if it falls on a weekend or public holiday. Full 2026/27 due-date table.
Employers whose total annual payroll is R500,000 or less are exempt from the Skills Development Levy. How the threshold works, who is exempt, and how to register when you cross it.
The UIF contribution ceiling is R17,712 of remuneration per employee per month, so the maximum UIF is R177.12 from the employee and R177.12 from the employer.
Employers must file the annual EMP501 reconciliation with IRP5/IT3(a) certificates by 31 May, and the interim reconciliation by 31 October. Penalties, e@syFile steps and checklist.
Paying PAYE late triggers a 10% penalty plus interest from the day after the due date. How SARS calculates it, how to request remission, and how to avoid it.
Which employees qualify for the Employment Tax Incentive: ages 18–29, valid SA ID or asylum/refugee permit, employed after 1 October 2013, and earning under R7,500 a month.
How a 13th cheque or annual bonus is taxed in South Africa: spread over the tax year, reported under IRP5 code 3605, subject to PAYE and UIF up to the ceiling.
The BCEA gives employees 21 consecutive days of paid annual leave per 12-month cycle — 15 working days on a five-day week. Accrual, payout and forfeiture rules.
Maternity leave in South Africa explained: four consecutive months unpaid under the BCEA, UIF maternity benefits of 38–60% of earnings, notice periods, and how to run it on payroll.
How sick leave works in South Africa: 30 days paid sick leave per three-year cycle, the first six months rule, medical certificates and how to track balances on payroll.
Family responsibility leave in South Africa: three paid days a year under the BCEA, who qualifies, which events count, proof employers may ask for and how it is paid.
Retrenchment in South Africa explained: the section 189 consultation process, notice pay, severance of one week per year, leave pay-out, UIF claims and tax treatment.
Every South African public holiday for 2026 plus the BCEA pay rules: double pay for work on a holiday, Sunday overlap, shift workers and how to process it on payroll.
What you must pay a domestic worker in South Africa: national minimum wage, UIF registration and the 1%+1% contribution, payslips, leave and COIDA cover.
How to pay casual, part-time and temporary workers in South Africa: the 24-hour rule, UIF, PAYE, leave accrual and the three-month deemed-permanent rule for labour broker staff.
Step-by-step: register for PAYE and SDL with SARS on eFiling, register for UIF on uFiling, add COIDA cover, and set up your first payroll run — with timelines and penalties.
The 2026/27 SARS income tax brackets, primary/secondary/tertiary rebates, tax thresholds and medical aid credits, with a worked monthly PAYE example for employers.
When a SARS tax directive is required: severance, lump sums, commission earners, backdated pay and fixed-percentage directives. IRP3(a), IRP3(b) and IRP3(s) explained.
How to tax commission in South Africa: PAYE on variable income, source code 3606, the 50% commission rule for expense claims, and fixed-percentage directives.
How to calculate and tax leave pay on termination in South Africa: the BCEA formula, accrued days, source code 3605, and whether unused leave can be cashed out during employment.
A bonus or 13th cheque is fully taxable remuneration under source code 3605. Learn how SARS PAYE is calculated on a bonus, why the deduction looks so large, and how to spread the tax.
How pension, provident and retirement annuity contributions are treated on a South African payslip: the 27.5% and R350,000 section 11F caps, the employer fringe benefit and IRP5 source codes.
How SARS taxes a company car: the 3.5% (or 3.25% with a maintenance plan) monthly determined value rule, the 80/20 PAYE inclusion, logbook relief and IRP5 source codes 3802 and 3816.
How reimbursive travel works in SA payroll: the SARS prescribed rate per kilometre, the 8,000km threshold, when code 3702 becomes taxable, and how it differs from a fixed travel allowance.
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 R90 per month with free migration.