1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions, including income tax and UIF (Unemployment Insurance Fund) contributions. It represents the actual amount deposited into your bank account.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total salary before any deductions
• Income Tax — Calculated based on South African tax brackets
• UIF — 1% of gross salary, capped at ZAR 177.12 per month

3. South African Tax Brackets 2025-2026

Tax rates for individuals (2025-2026):

• 18% on income up to ZAR 237,100
• 26% on income between ZAR 237,101 - 370,500
• 31% on income between ZAR 370,501 - 512,800
• 36% on income between ZAR 512,801 - 673,000
• 39% on income between ZAR 673,001 - 857,900
• 41% on income between ZAR 857,901 - 1,817,000
• 45% on income above ZAR 1,817,000

4. Using the Calculator

Instructions: Enter your annual gross salary in ZAR (South African Rand) and click Calculate. The calculator will show your estimated income tax, UIF contribution, and net salary.

5. Frequently Asked Questions (FAQ)

Q1: What is UIF?
A: The Unemployment Insurance Fund provides short-term relief to workers when they become unemployed or are unable to work.

Q2: Are there other deductions not included here?
A: Yes, this calculator doesn't include medical aid, pension/provident fund contributions, or other voluntary deductions.

Q3: Is the tax calculation accurate for all situations?
A: This provides an estimate. Actual tax may vary based on tax credits, deductions, and special circumstances.

Q4: When does the tax year start in South Africa?
A: The South African tax year runs from 1 March to 28/29 February.

Q5: How often is UIF deducted?
A: UIF is deducted monthly (1% of gross salary) but calculated here as an annual amount.