How to Read Your Payslip
Learning how to read your payslip makes sense of the gap between what you earn and what lands in your account. A payslip lists what you were paid, what was taken off, and what’s left — but the labels can be confusing. This guide walks through each part of a typical South African payslip so you can check that your pay and deductions are correct.
Last updated: May 2026 · Source: SARS · Department of Employment and Labour
Gross Pay vs Net Pay
The two numbers that matter most sit at the top and bottom of your payslip. Your gross pay is your full salary before anything is taken off — the figure in your contract. Your net pay, sometimes labelled “take-home pay,” is what’s left after all deductions, and it’s the amount actually paid into your account. Everything in between explains how you got from one to the other. If those two numbers and the deductions don’t add up, that’s your first sign something is worth querying.
The Earnings Section
The earnings section lists everything you were paid this period. Your basic salary is usually the largest line. Below it you may see allowances such as a travel or housing allowance, and any variable pay like overtime, commission or a bonus. Some of these are taxed differently from your basic salary, which is one reason your tax can jump in a month you receive a bonus. Added together, these lines make up your gross pay for the period.
The Deductions Section
This is where money is taken off, and it’s worth knowing each line. PAYE is your income tax, deducted and paid to SARS by your employer. UIF is your 1% contribution to the Unemployment Insurance Fund, which is capped, so it never exceeds R177.12 a month. After those two, you may also see deductions for a pension or provident fund, a medical aid, or other items your employer manages on your behalf. Pension and retirement contributions actually lower your taxable income, and a medical aid gives you a tax credit — both of which reduce your PAYE, which is why your tax can be lower than a simple bracket calculation suggests.
Employer Contributions and the Codes
Some payslips show amounts your employer pays on top of your salary — such as their matching 1% UIF contribution or their share of your pension or medical aid. These are not deducted from you; they’re shown for transparency, so don’t mistake them for money coming out of your pay. You may also see SARS source codes (for example, a code next to your basic salary or travel allowance). These tell SARS what type of income each amount is, and they feed into your tax certificate at the end of the year.
What to Check Every Month
Take a minute each month to confirm a few things. Check that your gross pay matches your contract, that your UIF is being deducted (it builds your right to claim later), and that your net pay equals your gross pay minus the deductions listed. Keep your payslips — you’ll need them if you ever claim UIF, apply for a loan, or query your tax. If a deduction appears that you don’t recognise, or your UIF is missing, raise it with your employer or payroll department, because unpaid UIF contributions can affect a future claim.
Frequently Asked Questions
What is the difference between gross and net pay?
Gross pay is your full salary before deductions. Net pay is what’s left after PAYE, UIF and any other deductions — the amount paid into your account.
What deductions should be on my payslip?
Almost everyone has PAYE (income tax) and UIF. You may also have pension, provident fund or medical aid deductions, depending on your employer.
Why is my take-home pay lower than my salary?
Because PAYE, UIF and any pension or medical aid contributions are taken off your gross salary before you’re paid.
Should I keep my payslips?
Yes. You’ll need them to claim UIF, apply for credit, or query your tax, so keep them somewhere safe.
Related pages
📋 Verified — Official sources: SARS · SARS (UIF)
⚠️ This page is for informational purposes only and does not constitute legal or financial advice. KnowMyGovt is not affiliated with SARS nor the South African government. Always confirm current rates on the official SARS website.
