PAYE (Pay As You Earn)
PAYE is income tax deducted from your salary by your employer and paid to SARS on your behalf. The amount depends on how much you earn – the more you earn, the higher the percentage. If your income is below the annual tax threshold, you pay no PAYE.
- Paid by: you (deducted from your salary).
- Goes to: SARS (income tax).
- Why it matters: it is your income tax; you may get a refund at tax time if too much was deducted.
UIF (Unemployment Insurance Fund)
UIF is a safety net that pays you benefits if you lose your job, cannot work due to illness, or take maternity leave. Both you and your employer contribute 1% of your salary each, so 2% in total goes to the fund.
- Paid by: you (1%) and your employer (1%).
- Goes to: the Unemployment Insurance Fund.
- Why it matters: you can claim from it if you become unemployed or go on maternity or illness leave.
SDL (Skills Development Levy)
SDL funds skills training and learnerships in South Africa. Importantly, it is paid by your employer, not deducted from your salary. It should not reduce your take-home pay.
- Paid by: your employer (1% of payroll), not you.
- Goes to: SETAs, to fund skills development and learnerships.
- Why it matters: it funds the learnerships and training many workers benefit from.
How to claim UIF
If you lose your job, you can claim UIF benefits. You will generally need:
- Your ID.
- Your UI-19 form (your employer declares your employment and end date).
- A certificate of service.
- Your banking details.
Apply through the Department of Employment and Labour, online via uFiling or at a labour centre. Claim as soon as possible after your employment ends.
Check your payslip
Make sure your payslip shows PAYE and UIF deducted correctly, and that SDL is not being deducted from your salary. If something looks wrong, ask your HR or payroll department to explain.
Know your rights
Understanding your payslip helps you plan and protects you. For more on your rights at work, read our other career guides and browse current opportunities.