How it works
Increase = new salary − current salary Percentage = increase ÷ current salary × 100 Extra take-home = (new salary − PAYE − UIF) − (current salary − PAYE − UIF) Real increase = (1 + increase %) ÷ (1 + inflation %) − 1
PAYE is calculated on the 2027 SARS tables with the primary (and, if you choose, age) rebates. Medical aid credits and retirement contributions are not included — use the SARS income tax calculator for those.
Worked examples
6% increase on R30 000 a month
The gross increase is R1 800 a month, but because the extra income is taxed at the 26% marginal rate, your take-home pay rises by about R1 332.
Before tax
- Current salary
- R30 000.00
- New salary
- R31 800.00
- Increase per month
- R1 800.00
- Increase per year
- R21 600.00
Offered R32 000 instead of R30 000, with 3.2% inflation
A 6.67% increase beats 3.2% inflation, giving a real increase of about 3.4%.
Before tax
- Current salary
- R30 000.00
- New salary
- R32 000.00
- Increase per month
- R2 000.00
- Increase per year
- R24 000.00
Frequently asked questions
Why is my take-home increase smaller than my raise?
The extra income is taxed at your marginal rate — the bracket your top rand falls in — not your average rate. On R30 000 a month that is 26%, so you keep about 74% of the increase.
Can an increase leave me worse off after tax?
No. South Africa’s tax system is progressive by bracket, so only the income above each threshold is taxed at the higher rate. You always keep part of an increase.
What is a “real” increase?
Your increase after inflation. If your salary rises 5% while prices rise 5%, your buying power stays the same.