Tax on Bonuses, 13th Cheques and Commission in South Africa
The bonus lands in your account on a Friday, and by Monday the payslip has arrived with a deduction that looks like a mistake. You earned R14,800 more than usual and the tax went up by nearly R4,000. Colleagues who checked the same payslip heard the same explanation from payroll: “bonuses are taxed at a […]
How to calculate severance pay and retrenchment pay in South Africa
Severance pay is calculated on remuneration for completed years of service. Severance pay in South Africa is one of the few employment amounts a person can calculate on paper before signing anything. It is not a discretionary gift, and it is not the same thing as notice pay or a leave payout. Section 41 of […]
How to Calculate Leave Pay in South Africa
Leave pay is one of the few payroll figures that almost everybody gets wrong on the first attempt, and it is usually because two different things are being confused. The first is the pay you receive while you are on holiday. The second is the lump sum you receive when your employment ends and you […]
How to Work Out a Dividend Withholding Tax Figure in South Africa
Dividend withholding tax is one of those South African taxes that most investors meet before they understand it. The number appears on a statement with no explanation, the amount is already deducted, and the question that follows is always the same: is this correct? Working it out takes a few minutes once you know the […]
How to Calculate Child Support in South Africa: A Complete Guide
What the Maintenance Act Requires of Both Parents Child support in South Africa is governed by the Maintenance Act 99 of 1998. The Act starts from one non-negotiable principle: every child has a legal right to reasonable maintenance from both parents, and a parent has a duty to support a child in proportion to that […]
How to Calculate Overtime Pay in South Africa: A Complete Guide
Overtime is one of the most frequently misunderstood parts of the South African payroll system. Employees often believe they are owed more than they receive, and employers often pay more or less than the law requires because nobody has checked the formula. The rules are set out in the Basic Conditions of Employment Act, and […]
How to Calculate Your Income Tax in South Africa: A Complete Guide
Income tax is one of the most important financial obligations for working South Africans. Every year, millions of people file their tax returns with the South African Revenue Service, or SARS, and many of them wonder whether they are paying the right amount. Understanding how income tax is calculated can help you plan your finances, […]
How to Calculate Your Electricity Bill in South Africa: A Complete Guide
Reducing the bill usually starts with knowing what each appliance actually costs, and the same principle applies to a slow home network. Understanding Your South African Electricity Bill Electricity bills in South Africa can be confusing, with a range of charges, taxes, and levies that vary depending on your municipality, your tariff structure, and how […]
How Much Life Insurance Do You Need in South Africa? A Practical Guide
Estate planning and life cover are usually reviewed in the same sitting, and the guide to writing a will covers the other half. Why Life Insurance Matters for South African Families Life insurance is one of those topics people tend to put off. It is not exciting, it requires thinking about things nobody wants to […]
How to Calculate Your Water Bill in South Africa: A Complete Guide
Understanding Your Water Bill Water is one of those essential services that most of us use without thinking, until the bill arrives. In South Africa, water is billed by the municipality, and the amount you pay depends on how much water you use, the tariff structure in your area, and a range of additional charges […]
How to Calculate Fuel Consumption and Cost Per Kilometre in South Africa
Most drivers have only a vague idea what a kilometre actually costs them. The manufacturers’ figures are measured on a rolling road in a laboratory, the fuel price changes every month, and the trip computer is optimistic. This guide shows you how to work out the real number from your own driving, in about five […]
How Much Can You Afford to Borrow for a Home Bond in South Africa?
If the property is being bought to let out, a lease agreement template saves drafting from scratch. Figuring Out Your Borrowing Power Buying a home is one of the biggest financial decisions most South Africans will ever make, and the single most important number to understand is how much you can actually afford to borrow. […]