This article provides a Tax Deduction Breakdown of the total cost to a South African company for an employee earning a gross monthly salary of R100,000.00.
Tax Deduction Breakdown: UIF, SDL, and WCA Contributions
- UIF Monthly Contribution: 1% employee deduction & 1% employer contribution, limited to a gross remuneration of R17,712.00.
- On a gross remuneration of R100,000.00, the cost will be:
- R177.12 deduction from the employee’s salary.
- R177.12 contribution by the employer.
- UIF is a government unemployment insurance fund that provides payouts to employees in case of retrenchment.
- On a gross remuneration of R100,000.00, the cost will be:
- SDL Monthly Contribution: 1% employer contribution based on gross remuneration.
- On a gross remuneration of R100,000.00, the cost will be:
- R1000.00 employer contribution.
- SDL is the government skills development levy.
- On a gross remuneration of R100,000.00, the cost will be:
- WCA Annual Contribution: Employer contribution of approximately 1% of annual gross remuneration.
- On a gross remuneration of R100,000.00, the cost will be:
- Around R2,400.00 employer contribution.
- WCA (Workmen’s Compensation) is a government fund that contributes to employees’ medical expenses for job-related injuries.
- This cost varies as the percentage contribution is announced annually.
- On a gross remuneration of R100,000.00, the cost will be:
Summary of Total Cost to Company for an Employee Earning a Monthly Gross Remuneration of R100,000.00
Monthly Costs:
- R100,000.00 salary.
- R177.12 UIF contribution.
- R1000.00 SDL contribution.
Total Monthly Cost: R101,177.12
Annual Costs:
- R2,400.00 WCA contribution.
Total Annual Cost to Company: R1,214,125.44