South Africa Employer Payroll On-Cost Calculator (UIF, SDL, COIDA)
This calculator shows the statutory cost an employer carries on top of gross pay in South Africa. It covers the three levies most plant finance teams model first: UIF, the Skills Development Levy and the COIDA assessment.
Your numbers
Average gross remuneration per employee per month.
The ceiling has been R17,712 per month since 2021. Check the current figure with the Department of Employment and Labour.
1% employer, matched by 1% from the employee.
Skills Development Levy is 1% of leviable remuneration.
Your Compensation Fund rate depends on your industry class and is set on your assessment. Enter the rate on your letter.
Your results
Planning estimate. Medical aid, pension, bonuses, leave pay and the ETI incentive are not included. Confirm rates and ceilings with SARS and the Compensation Fund.
Statutory on-cost per employee vs gross monthly pay
Sweeps Gross monthly pay per employee from 4000 to 60000, holding your other inputs fixed.
Payroll cost reconciliation review
Optional: we compare your ERP payroll postings to a statutory on-cost model and list the gaps.
Optional. The tool and every export work without this. No spam.
How to use it
Enter the average gross monthly pay, the headcount and the three rates. Change the UIF ceiling if the figure has moved. The result shows the on-cost per employee and for the whole company, per month and per year. The chart sweeps gross pay so you can see where the UIF ceiling stops adding cost.
- Use the average, or run separate scenarios for shop floor and office staff
- Take the COIDA rate from your own Compensation Fund assessment
- Leave the SDL threshold logic as is unless the law changes
The method behind the numbers
UIF is charged at 1% of remuneration up to the monthly ceiling, so the maximum employer UIF per employee is the ceiling times 1%. SDL is 1% of leviable payroll but only applies once annual payroll exceeds R500,000. COIDA is a percentage of earnings, with the rate set per industry class and capped by an annual earnings maximum, which this tool does not model.
Reading the result
Below the UIF ceiling the on-cost percentage is roughly constant. Above the ceiling, UIF flattens and the percentage falls. With default inputs the statutory levies add a low single-digit percentage to gross pay. They are small next to medical aid, pension and overtime, so treat this as one layer of a full cost-to-company model.
Common mistakes
Teams often apply UIF to the full salary and overstate cost for managers. Others forget SDL has a payroll threshold, or apply the wrong COIDA rate because they copied another company's class. In an ERP, check how the payroll or HR module caps the UIF base so that the posting matches the SARS EMP201 return.
Frequently Asked Questions
What is the current UIF ceiling?
UIF contributions are calculated on earnings up to a monthly ceiling, which has been R17,712 since 2021, giving a maximum of R177.12 each for employer and employee. The ceiling can change, so verify the figure on the Department of Employment and Labour website before budgeting.
Does SDL apply to every employer?
No. Employers whose total annual leviable payroll is expected to be R500,000 or less are exempt from SDL. Above that, the levy is 1% of total remuneration and is paid to SARS with the monthly EMP201 return.
Is COIDA a fixed percentage?
No. The Compensation Fund assigns a rate by industry class and your accident record, and applies it to annual earnings up to a maximum. This tool uses a single rate you enter, so use the figure from your latest assessment letter.
Are ETI incentives included?
No. The Employment Tax Incentive can reduce PAYE for qualifying young employees, but it depends on age, remuneration bands and eligibility rules. It is excluded here so the tool stays a clean statutory on-cost estimate.
If your ERP payroll cost and your budget model disagree, we can build a read-only comparison over your ledger data. Ask for a short review.
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