Many people never check a payslip and never learn what the deductions are. Knowing how to read it is how you notice when something is wrong, and it usually is worth money.
Gross pay is what you earned before deductions. Net pay is what actually reaches you. People agree a salary thinking of gross and then budget as if it were net, and that gap causes real trouble.
By law your payslip must show your employer's details, your details, the period, your gross pay, each deduction listed separately, and your net pay. If you are handed a number with no breakdown, that is not a payslip.
UIF is the Unemployment Insurance Fund. One percent comes off your pay and your employer contributes another one percent. It is what you claim from if you lose your job, so it matters that it is actually being paid over.
You are paid in cash with no payslip.
What happens: With no record, you cannot prove you worked there, cannot prove your income for a loan or a lease, and may find no UIF was ever paid for you.
What happens: You are entitled to one. It is proof of employment and income, and it is how you find out whether your UIF is really being paid.
How do I know if my UIF is really being paid?
Your payslip should show a UIF deduction. To confirm it reaches the fund, you can check with the Department of Employment and Labour. Do this while you still have the job, because discovering the problem when you need to claim is far harder to fix.
How much tax will I pay?
It depends on your income, and the thresholds change every year, so do not trust a figure you read anywhere including here. SARS publishes the current tables on their website, and below a certain annual income no income tax is payable at all. If your payslip shows tax and you earn little, ask your employer to check.
Is there a minimum wage?
Yes. South Africa has a national minimum wage, and the amount is reviewed and published by government each year, with some sectors set separately. Because it changes annually, check the current figure with the Department of Employment and Labour rather than relying on what someone told you last year.
Before you move on
- Ask for a payslip if you do not get one
- Learn the difference between gross and net
- Check that UIF appears on your payslip
Check what you know
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