Your payslip is the most useful financial document you receive, and many people never read it. A few minutes with it each month can catch errors and explain why take-home pay is lower than expected.
Here is how to read a payslip, part by part.
What are the 7 main parts?
| Section | What it shows |
|---|---|
| Employee and employer details | Name, ID, tax number, company |
| Earnings | Basic salary, overtime, bonuses, allowances |
| Gross pay | Total before deductions |
| Deductions | Tax, UIF, pension, medical aid, loans |
| Net pay | What is paid into your bank account |
| Leave | Balance of leave days |
| Year-to-date totals | Running totals for the tax year |
What do the usual deductions mean?
| Deduction | What it is |
|---|---|
| PAYE | Income tax deducted by your employer and paid to SARS |
| UIF | Unemployment Insurance Fund contribution, usually 1% of pay for you, plus 1% from your employer |
| Pension or provident fund | Retirement saving, if your employer offers it |
| Medical aid | Your contribution, if applicable |
| Other | Loan repayments, staff purchases, garnishee orders |
UIF helps pay out if you lose your job. See claiming UIF.
What does it look like in rand?
Here is a hypothetical example. The PAYE figure depends on SARS’s tax tables and your circumstances, so yours will differ.
| Line | Amount |
|---|---|
| Gross pay | R15,000 |
| PAYE | R1,740 |
| UIF (1%) | R150 |
| Pension (5%) | R750 |
| Medical aid | R1,200 |
| Net pay | R11,160 |
The R3,840 gap between gross and net is why a R15,000 salary feels like R11,000. Use net pay, not gross, when you plan a budget or check loan affordability.
How do you check a payslip line by line?
- Gross pay. Does it match your contract, including overtime?
- Hours and rates. Are they right?
- Deductions. Do you recognise each one?
- Net pay. Does it match what hit your account?
- Leave balance. Does it look right?
If you see a deduction you did not agree to, ask HR. Employers may only deduct in limited cases, usually with your written agreement or a legal requirement.
Why is net pay lower than expected?
Tax and other deductions add up. If you got a bonus, more of it may go to tax. See 13th cheque ideas and your SARS tax refund options.
Why keep your old ones?
- Loans and credit. Lenders may ask for them. See loan affordability.
- Rental applications.
- Tax. They support your return.
- Disputes. They are evidence of what you earned.
If you do not get one, ask your employer. Employers must provide it. For other proof of income, see loans without a payslip.
What about the year-end tax certificate?
Your employer issues an IRP5 or IT3(a) certificate after the tax year. Check that it matches your monthly slips before you file. See tax year-end and tax season.
What are the most common payslip errors?
Mistakes are usually small and easy to fix, if you notice them. Here are the ones to look for.
| Error | What it looks like | What to do |
|---|---|---|
| Missing overtime | Hours worked are higher than hours paid | Show HR your own record of the hours |
| A deduction that continues | A loan or fund that was settled still comes off | Ask HR for the end date in writing |
| Wrong leave balance | The days do not match your records | Ask for the leave statement |
| A new deduction | An item you do not recognise | Ask what it is and who authorised it |
| Pay below the agreed rate | Basic salary is lower than your contract | Compare with your contract and raise it |
Ask in writing, attach the slip, and keep the reply. Errors in your favour matter too. A mistake that overpays you can lead to a large deduction later, so report it.
How can you turn a payslip into a budget?
Start with net pay, not gross. Here is the earlier example, with R11,160 net, shared out in a hypothetical way.
| Item | Amount |
|---|---|
| Net pay | R11,160 |
| Rent | R3,800 |
| Food | R2,400 |
| Transport | R1,200 |
| Electricity and water | R800 |
| Debt repayments | R1,000 |
| Savings | R800 |
| Left for the rest | R1,160 |
Your numbers will differ, but the habit helps. Write each item on payday, and pay the fixed ones first. If your costs are higher than your net pay, the payslip shows you that before a bank statement does. See how to budget for a full method.
What does your employer pay that you do not see?
Your payslip shows what comes out of your pay. It does not show everything the employer pays on top.
Employers also contribute 1% of your pay to UIF and a skills development levy, so the true cost of employing you is higher than your gross pay.
UIF contributions stop at an earnings ceiling, so check the Department of Employment and Labour for the current limit.
When a job advert says “cost to company”, that is the total package, which includes things you may never see in cash. Ask what is included, and compare it with the net pay you would receive each month. That is the number that pays the bills.
What should a payslip tell you by law?
Employers must give you a statement of pay that shows who you are, who pays you, the period it covers, what you earned and what was deducted. Many also show hours worked and leave.
If yours is missing key details, ask for a corrected one in writing.
If an employer will not provide a payslip, you can contact the Department of Employment and Labour. In the meantime, keep your bank statements as proof of income, because lenders and landlords often ask for them. See loans without a payslip.
How long should you keep your payslips?
Keep them at least until the tax year they belong to has been assessed, and ideally for several years. A simple method: save a photo or PDF of each one in a folder named by tax year, such as “2025-26”.
When you apply for a rental, a loan or a visa, you will be able to find three months in a minute, and you will be glad you did.
Frequently asked questions
What is the difference between gross and net pay?
Gross pay is your total earnings before deductions. Net pay is what lands in your bank account after them.
Is UIF taken from my salary?
Yes, usually 1% from you and 1% from your employer. See the Department of Employment and Labour for the rules.
Can my employer refuse to give me one?
No. Employers must provide it. Ask HR in writing if you do not receive one.
What if my net pay is wrong?
Ask HR for a breakdown. If it is not resolved, you can contact the Department of Employment and Labour.
Do I need a payslip for a bank account?
Banks usually ask for proof of income and address. A payslip is one option, and bank statements can work too. Ask the bank what it accepts.
Why does my payslip show leave pay or an unusual deduction?
It may be a leave payout, a loan repayment or an adjustment. Ask HR to explain any line you do not recognise.
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