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Employers in South Africa make three social security contributions - UIF - Unemployment Insurance Fund, SDL - Skills Development Levy and Compensation for Occupational Diseases. UIF and SDL payments are made monthly (defined below), are made on a monthly, while the Compensation for Occupational Diseases is paid once a year.
| Contribution | Contribution amount |
|---|---|
| UIF | Total of 2% each month, with the employer contributing 1% |
| SDL | 1% of total monthly payroll (including wages, overtime, leave, bonuses, fees, commissions and lump sum payments) |
| Compensation Fund | The annual assessment fee due to the Compensation Fund is calculated based on employees' earnings according to an assessment tariff based on the risks associated with the type of work being done. Before 31 March each year, all employers (including contractors) must submit a statement of earnings paid to all their workers from 1 March to 28/29 February. |
| Collective Labour/Bargaining | Industry dependent. |
Employees in South Africa pay income tax via PAYE—Pay As You Earn—and contribute to the Unemployment Social Fund.
| Gross income (from) | Gross income (to) | Progressive tax rate |
|---|---|---|
| R0 | R237,100 | 18% |
| R237,101 | R370,500 | R42,678 + 26% of taxable income above R237,100 |
| R370,501 | R512,800 | R77,362 + 31% of taxable income above R370,500 |
| R512,801 | R673,000 | R121,475 + 36% of taxable income above R512,800 |
| R673,001 | R857,900 | R179,147 + 39% of taxable income above R673,000 |
| R857,901 | R1,817,000 | R251,258 + 41% of taxable income above R857,900 |
| R1,817,001 | above | R644,489 + 45% of taxable income above 1,817,000 |
In addition to these figures, there are also certain rebates and thresholds associated with age:
The EUR figures have been determined by applying an exchange rate of 1 ZAR = 0.05 EUR.
As noted above, UIF is paid by both employer and employee, each contributing 1% each month of salary for a total of 2% per month, per employee.
| Contribution | Contribution amount |
|---|---|
| UIF | 2% of employee salary per month, 1% by employee. |
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