Frequently Asked Questions
What is PAYE
PAYE, or Pay As You Earn, is a method of tax withholding that's used in South Africa. It's a way for employers to deduct income tax from their employees' salaries or wages before payment. This deducted amount is then paid directly to the South African Revenue Service (SARS). The purpose of PAYE is to spread out the payment of an individual's annual tax liability over the entire year, making it easier and more manageable for the taxpayer.
What is SDL?
SDL, or Skills Development Levy, is a tax imposed in South Africa to encourage learning and development in the workforce. It's payable by employers at a rate of 1% of the total amount paid in salaries to employees. The funds are used towards education and training as stipulated by the Skills Development Act. The South African Revenue Service (SARS) is responsible for collecting the levy.
What is UIF?
UIF, or Unemployment Insurance Fund, is a South African government initiative designed to provide short-term relief to workers when they become unemployed or are unable to work due to maternity, adoption leave, or illness. Both the employer and employee contribute 1% of the employee's salary to the fund. It's important to note that the UIF benefits are only available to those contributors who lose their income, not for those who voluntarily quit their jobs.
