As an employer, one of your responsibilities is the payment of employee’s tax which can be calculated using the SARS PAYE tables below:
PAYE Tax Deduction Tables
To view the latest PAYE Tax deduction tables, visit the SARS website here.
PAYE Statutory Rates
| Statutory Rates (Individuals) | |
|---|---|
| Taxable Income (R) | Rates of tax (R) |
| 0 – 165 600 | 18% of each R1 |
| 165 601 – 258 750 | 29 808 + 25% of the amount above 165 600 |
| 258 751 – 358 110 | 53 096 + 30% of the amount above 258 750 |
| 358 111 – 500 940 | 82 904 + 35% of the amount above 358 110 |
| 500 941 – 638 600 | 132 894 + 38% of the amount above 500 940 |
| 638 601 and above | 185 205 + 40% of the amount above 638 600 |
| Tax rebates (Individuals) | |
|---|---|
| Primary Rebate | R 12 080 |
| Secondary rebate (for persons 65 years and older) | R 6 750 |
| Tertiary rebate (for persons 75 years and older) | R 2 250 |
| Tax Thresholds | |
|---|---|
| Persons under 65 years | R 67 111 |
| Persons 65 years and older | R104 611 |
| Persons 75 years and older | R117 111 |
What is PAYE?
PAYE (Pay as your earn) forms a part of employee tax which is deducted from an employee’s wages by their employer.
Pay as you earn (PAYE) ensures that an employee’s income tax liability is settled on a continual basis at the very same time that their income is earned.
Who is eligible to pay PAYE?
An Employer is required to deduct or withhold PAYE from a employee’s wages and pay these amounts to SARS on a monthly basis. The Employer must make this payment within seven days after month end.
Need Assistance with your employee’s tax?
If you are an employer and need advice on employee’s tax, contact professional accountant and tax consultant Brett on 021 421 4444.
