PAYE Calculation Slab
| Taxable income (R) | Rates of tax (R) |
| 1 – 216 200 | 18% of taxable income |
| 216 201 – 337 800 | 38 916 + 26% of taxable income above 216 200 |
| 337 801 – 467 500 | 70 532 + 31% of taxable income above 337 800 |
| 467 501 – 613 600 | 110 739 + 36% of taxable income above 467 500/td> |
In South Africa, how is PAYE calculated?
PAYE on regular income is computed by first calculating the tax on a predicted income for the year (referred to as the annual equivalent) and then de-annualising the tax to determine the tax payable for the period.
What is the tax rate on PAYE?
How does PAYE work? If you make more than the personal allowance pay maximum, you’ll be taxed at 20%, 40%, or 45% of your earnings, depending on whether you’re in the basic rate, higher rate, or additional rate tax bracket. This is calculated using your annual income.
In South Africa, who pays PAYE?
employer
Employees’ Tax is the tax that an employer is required to withhold from an employee’s remuneration received or payable. PAYE refers to the process of deducting or withholding tax from an employee’s salary as it is earned.
How much do I have to earn to pay PAYE South Africa?
If you are under the age of 65, the fee is R91,250. If you are between the ages of 65 and 75, the tax threshold (the amount at which income tax becomes payable) is R141,250. This level is R157,900 for taxpayers aged 75 and up.
Is PAYE based on gross or net pay?
Gross income is the sum of all wages, salaries, profits, interest payments, rentals, and other forms of earnings before any deductions or taxes for individuals. As a result, PAYE is computed depending on the employee’s wages, which include basic pay, bonuses, fringe benefits, and other allowances.
