How to Create a Payslip in South Africa
A step-by-step guide for employers. Covers every field the BCEA requires, how to calculate PAYE and UIF, and common mistakes.
It's the law
Section 33 of the Basic Conditions of Employment Act 75 of 1997 requires every employer to provide a payslip on each pay day. No exceptions, even for one employee.
Step 1: Gather employee information
Before you can create a payslip, you need:
- Employee full name and ID number
- Job title / occupation
- Start date of employment
- Agreed salary or wage (monthly, weekly, or hourly)
- Tax number (if registered with SARS)
- UIF reference number
- Bank details (for payment, not shown on payslip)
Step 2: Calculate gross pay
Gross pay is the total before deductions. It includes:
- Basic salary or wage
- Overtime pay (BCEA Section 10: 1.5× normal rate, or 2× for Sundays/public holidays)
- Commission or bonuses (if applicable)
- Allowances (travel, housing, etc.)
Step 3: Calculate deductions
There are two types of payslip deductions:
Statutory deductions (required by law)
PAYE: Income tax deducted using SARS tax tables. Annualise the gross pay, apply the tax bracket, subtract the rebate, divide by 12.
UIF: 1% of gross pay (employee share). Maximum on remuneration of R17,712/month.
Voluntary deductions (agreed with employee)
Pension / provident fund, medical aid, union fees, loan repayments. Section 34 of the BCEA requires the employee's written consent for any deduction except statutory ones.
Step 4: Calculate net pay
Net pay = Gross pay − All deductions. This is the amount actually paid to the employee.
Example payslip
A sample payslip PDF.
Step 5: Issue the payslip
The payslip must be given to the employee on pay day. It can be:
- A printed document
- An electronic document (PDF via email or WhatsApp)
- Generated by payroll software
The BCEA does not specify the format, only that it must be written and contain the required information. A PDF sent via WhatsApp is perfectly acceptable.
The easy way: a free payslip generator
Instead of building a spreadsheet, put the figures from steps 1 to 4 into the free payslip generator. It lays out the BCEA fields for you and runs in your browser, with no signup.
- Enter the employer and employee details and the pay period
- Add an earnings line for each part of gross pay
- Add a deduction line for PAYE, UIF, and each voluntary deduction, using the amounts you calculated in step 3
- Check gross pay, total deductions, and net pay in the live preview
- Click Download PDF and choose 'Save as PDF' in the print dialog
- Send the PDF to the employee on WhatsApp as a document, email it, or print it
The generator does the layout and the adding up. It does not calculate PAYE or UIF, and it does not store payslips, so save each PDF as your payroll record.
Free payslip generator
Fill in earnings and deductions and download a BCEA-compliant PDF. No signup.
FAQ
Do all employees need a payslip?
Yes. Section 33 of the BCEA requires every employer to provide a payslip on each pay day. This applies to full-time, part-time, and temporary employees, including domestic workers, farm workers, and casual staff.
What happens if I don't provide payslips?
An employee can lodge a complaint with the Department of Employment and Labour, or refer a dispute to the CCMA. Failure to comply with Section 33 is an offence under the BCEA and can result in fines.
Can I use an Excel spreadsheet for payslips?
Yes, but it's error-prone. You need to update SARS tax tables annually, calculate PAYE correctly using annualisation, and ensure all BCEA-required fields are present. A simpler option is the free wabill payslip generator: it gives you a layout with the BCEA-required fields, you type in the earnings and deduction amounts, and you download a PDF.
How do I calculate overtime on a payslip?
Under Section 10 of the BCEA, overtime is paid at 1.5× the normal hourly rate. Normal hourly rate = monthly salary ÷ 195 hours (for a 45-hour week). Sunday and public holiday work is paid at 2× the normal rate.
Free to use. No signup. Nothing leaves your browser.