Payslip
Learn what a payslip is, what it must legally show, and the PAYE and UIF deductions on it in South Africa.
Published Wednesday 12 August 2026
Table of contents
Key takeaways
- A payslip is a document from your employer that shows your earnings, deductions and net pay for each pay period.
- Under the Basic Conditions of Employment Act, South African employers must provide a written payslip every time they pay an employee.
- Common deductions include PAYE (income tax), UIF contributions and voluntary items such as medical aid and retirement fund payments.
- Payslips serve as proof of income for loan applications, rental agreements and visa requirements.
What is a payslip?
A payslip is a document that itemises an employee's earnings and deductions for a specific pay period. It is also called a pay stub, salary slip or pay advice.
The payslip shows how much you earned before deductions (gross pay), what was taken out and the amount deposited into your bank account (net pay). Employers issue payslips alongside each wage or salary payment so employees can verify their pay is correct.
What information is on a payslip?
A standard payslip includes identifying details for both the employer and the employee, a breakdown of earnings and all deductions made during the pay period. You'll typically find:
- employer name and address
- employee name and occupation
- the pay period
- gross earnings (salary or wages, plus overtime, bonuses, commission and allowances)
- deductions
- net (take-home) pay
- year-to-date totals
- leave balances
Gross pay vs net pay
Understanding the difference between gross pay and net pay helps you read your payslip accurately.
Gross pay is the total amount you earn before any deductions. It includes your basic salary or wages, overtime, bonuses, commission and allowances. This figure appears near the top of most payslips.
Net pay (sometimes called take-home pay) is the amount you actually receive after all deductions have been subtracted. Deductions typically include tax, UIF contributions and any voluntary amounts you've agreed to, such as retirement fund contributions or medical aid. Net pay is the figure deposited into your bank account.
Common payslip deductions in South Africa
Several statutory and voluntary deductions may appear on your payslip each month. Knowing what each one means helps you check that your pay is correct.
PAYE (Pay As You Earn) is income tax deducted from your salary each month and paid to SARS on your behalf. The amount depends on your taxable income and the applicable tax bracket.
UIF (Unemployment Insurance Fund) contributions are split between you and your employer. You pay 1% of your remuneration and your employer contributes another 1%, as set out by SARS. These funds provide short-term relief if you become unemployed, fall ill or take maternity leave.
Voluntary deductions may include medical aid premiums, retirement or pension fund contributions, insurance and union fees. You agree to these deductions with your employer.
Employers with an annual payroll above R500 000 also pay the Skills Development Levy (SDL) at 1% of total remuneration. The SDL is an employer cost, not an employee deduction, so it won't reduce your take-home pay.
For step-by-step guidance on managing these calculations, see how to run payroll.
What a payslip must legally include in South Africa
Under the Basic Conditions of Employment Act, employers must give every worker a written payslip each time they are paid. The payslip must contain specific details so employees can verify their earnings and deductions.
Required information includes:
- employer's name and address
- worker's name and occupation
- the period for which payment is made
- total salary or wages
- any deductions
- the actual amount paid
- where relevant to the calculation: the pay rate, overtime rate and the number of ordinary and overtime hours worked
Paper vs electronic payslips
Traditionally, employers handed out a paper payslip with each wage payment. The slip served as both a receipt and a record for the employee.
Today, most businesses issue electronic payslips by email or through an online portal. Digital payslips are easier to store, harder to lose and can be accessed from anywhere. They also reduce printing costs and administrative time for employers.
If you're considering a switch, learn how online payroll works and explore the benefits of payroll outsourcing.
What is a payslip used for?
Beyond confirming your monthly earnings, a payslip serves several practical purposes.
Payslips act as proof of income and employment. Lenders, landlords and visa officers often request recent payslips when you apply for a home loan, credit, a rental agreement or travel documentation. See what else you might need when you apply for a business loan.
They also provide a record for tax returns. The year-to-date totals on your payslip help you verify your IRP5 certificate and complete your annual tax submission to SARS.
Finally, payslips promote transparency between you and your employer. They let you confirm that the correct amounts have been paid and deducted, making it easier to raise any discrepancies quickly.
Manage payslips and payroll with Xero
Running payroll and producing accurate payslips doesn't have to be complicated. Xero's payroll software calculates PAYE, UIF and other deductions automatically, then generates payslips you can email to employees with a single click.
Ready to simplify your payroll? Sign up and get one month free. For more detail on bringing staff into your business, see the guide to hiring employees.
FAQs on payslips
Here are answers to common questions about payslips in South Africa.
What is the difference between a payslip and a pay stub?
There is no difference. "Payslip" and "pay stub" are interchangeable terms for the same document. South Africans typically say "payslip", while "pay stub" is more common in North America.
Is a payslip a legal requirement in South Africa?
Yes. The Basic Conditions of Employment Act requires employers to provide a written payslip every time an employee is paid.
What is the difference between a payslip and a paycheck?
A payslip is the document listing your earnings and deductions. A paycheck (or paycheque) is the actual payment, whether a physical cheque or an electronic transfer into your bank account.
Is a payslip proof of income?
Yes. Payslips are widely accepted as proof of income for loan applications, rental agreements and visa applications. Lenders and landlords usually ask for the three most recent payslips.
How long should payslips be kept?
SARS requires taxpayers to keep the supporting documents behind a tax return, including payslips, for five years from the date the return is submitted. Holding on to your payslips for at least that long makes it easy to check your pay history or resolve a query.
Related terms
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.