Cost to Company (CTC) Calculator South Africa 2025/26
Updated for the 2025/26 tax year · SARS & BCEA aligned · Free, no sign-up
Free Cost to Company (CTC) calculator for South Africa. Add basic salary, retirement, medical and allowances to see the true total cost including employer UIF and SDL.
Related: payroll software South Africa · SARS-compliant payroll · cloud payroll software South Africa · payroll guides
Cost to Company calculator
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What Cost to Company really means
Cost to Company (CTC) is the total amount an employer spends on an employee each month — not just the salary the employee sees. In South Africa it typically bundles basic salary, employer retirement contribution, medical aid, allowances (cell phone, car, travel), and statutory employer costs like UIF and the Skills Development Levy.
Statutory employer costs
- Employer UIF — 1% of remuneration capped at R177.12/month.
- SDL — 1% of the total payroll, payable when annual payroll exceeds R500,000.
- Compensation Fund (COIDA) — annual premium based on industry risk rate (not monthly).
CTC vs basic salary
When a package is quoted as "R500,000 CTC per year", that includes everything the employer will pay to or on behalf of you. The basic salary you take home from is usually 70–80% of that number. Always ask for the breakdown before signing.
Typical CTC structure
- Guaranteed pay: basic salary + fixed allowances.
- Company contributions: retirement fund, medical aid, group life.
- Variable pay: performance bonus, commission.
- Employer statutory: UIF, SDL, COIDA.
Why the split matters
The split affects your PAYE (retirement is tax-deductible), your net take-home, your retirement outcome, and the medical tax credit you can claim. A well-structured CTC can improve net pay by several percent without costing the employer more.
Related payroll guides
Frequently asked questions
Is CTC the same as gross salary?
No. CTC is broader — it includes employer retirement, medical, allowances and statutory costs. Gross salary is just the pre-tax salary line.
Should I structure my package with more retirement contribution?
Often yes — retirement contributions up to 27.5% of remuneration (capped at R350,000/year) are tax-deductible, reducing your PAYE.
Is a company car part of CTC?
Yes, and it also creates a taxable fringe benefit of 3.5% of the determined value per month (3.25% with a maintenance plan).
Does SDL apply to small employers?
SDL only applies if the employer's total annual payroll exceeds R500,000. This calculator estimates on your entry — Payroll Africa checks the real annual payroll.
What about the Compensation Fund (COIDA)?
COIDA is an annual return (W.As.8) based on total payroll and your industry risk class — it's not deducted monthly.
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