Reviewing a Salary Slip
Reviewing a Salary Slip
Goal: understand and sanity-check a salary slip before you submit it.
What's on the slip
| Figure | Meaning |
|---|---|
| Gross pay | Total earnings. |
| PAYE | Employees' tax, from the tax slab less rebates and the medical tax credit. |
| UIF (employee) | 1% of the UIF base, capped at the monthly UIF cap. |
| UIF (employer) | 1% on the same base (an employer cost). |
| SDL | 1% of the SDL base (an employer cost). |
| ETI (monthly ETI) | Employment Tax Incentive for eligible young/low earners. Shown for visibility. |
| Net pay | Gross less employee deductions (PAYE, employee UIF, medical, retirement, etc.). |
| Total company contribution | Sum of employer costs (UIF employer, SDL, employer retirement/medical). |
Two things people get wrong
- ETI doesn't reduce the employee's pay. It's an employer incentive that reduces the PAYE the employer pays to SARS on the EMP201. The employee's PAYE and net pay are unaffected.
- Travel allowances are partly taxed. A fixed travel allowance is taxed at 80% by default (only 80% enters PAYE monthly). That's correct, not an error.
Quick sanity-check per slip
- PAYE is non-zero for taxable earners and not wildly high (a sign of the wrong-year tax slab).
- Employee UIF = employer UIF, both capped.
- ETI appears only for eligible employees.
- The medical tax credit reduced PAYE for scheme members.
- Net pay is positive and sensible.
If something looks off, it usually traces back to the employee's Salary Structure Assignment (wrong tax slab year) or a Salary Component's configuration. For the detail of how each figure is derived, see the practitioner guide → Understanding the SA Salary Slip.
Next
Once the slips look right: Pay Employees & Distribute Payslips.
Last updated 1 month ago
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