Cost to Company (CTC) Calculator South Africa 2026/27
Updated for the 2026/27 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.
Worked example — R30,000 basic salary
- Basic salary R30,000.
- Employer retirement at 7.5% = R2,250.
- Employer medical aid contribution R2,500.
- Employer UIF, capped at 1% of R17,712 = R177.12.
- SDL at 1% of remuneration = R300.
- Total monthly CTC R35,227.12 — R422,725 a year, about 17% more than the basic salary.
What employer cost looks like at common salaries
| Basic monthly | Employer UIF | SDL (1%) | Statutory add-on | Cost before benefits |
|---|---|---|---|---|
| R 8 000,00 | R 80,00 | R 80,00 | R 160,00 | R 8 160,00 |
| R 12 000,00 | R 120,00 | R 120,00 | R 240,00 | R 12 240,00 |
| R 20 000,00 | R 177,12 | R 200,00 | R 377,12 | R 20 377,12 |
| R 30 000,00 | R 177,12 | R 300,00 | R 477,12 | R 30 477,12 |
| R 45 000,00 | R 177,12 | R 450,00 | R 627,12 | R 45 627,12 |
| R 60 000,00 | R 177,12 | R 600,00 | R 777,12 | R 60 777,12 |
| R 90 000,00 | R 177,12 | R 900,00 | R 1 077,12 | R 91 077,12 |
Costs employers forget to budget for
- COIDA annual premium — industry risk rate applied to total payroll, submitted on the W.As.8 return.
- Bargaining council and provident fund levies in sectors like construction, motor and hospitality.
- Leave liability — accrued annual leave must be paid out on termination.
- Notice pay and severance (one week per completed year) on retrenchment.
- 13th cheque or performance bonus, if guaranteed in the contract.
- Employment Equity and Skills Development reporting costs for larger employers.
Structuring a package to work harder
Moving part of a package into an employer retirement contribution lowers PAYE without raising CTC, because contributions up to 27.5% of remuneration (R350,000 a year) are deductible. Medical aid brings a monthly tax credit of R376 for the first two members and R254 for each additional member. A travel allowance is 80% taxable unless at least 80% of use is business, in which case only 20% is taxed.
ETI can reduce your real cost
The Employment Tax Incentive reduces the PAYE you pay over to SARS for qualifying employees aged 18–29 earning under R7,500 a month — up to R1,500 a month in the first year and R750 in the second. It does not change the employee's pay, only the employer's cost.
Pair this with our salary calculator, UIF calculator and PAYE calculator.
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.
How much more than salary does an employee cost?
Statutory costs alone add about 1.5%–2% (employer UIF plus SDL). With retirement and medical aid, total CTC is typically 15%–25% above basic salary.
How do I convert a CTC figure to a basic salary?
Subtract employer retirement, medical aid, allowances, UIF and SDL from the CTC. As a rule of thumb, basic salary is around 70%–80% of a structured CTC package.
Is employer UIF part of CTC?
Yes — it is a cost the employer carries, capped at R177.12 a month. Only the employee's own 1% appears as a payslip deduction.
Does a travel allowance count towards CTC?
Yes. It is part of the package cost and is taxed on 80% of the allowance, or 20% if the employee can prove at least 80% business use.
Can ETI lower our cost to company?
ETI does not lower CTC, but it reduces the PAYE the employer pays over to SARS for qualifying 18–29 year olds earning under R7,500 a month — up to R1,500 a month.
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