South Africa · Glossary
20 local terms and acronyms: tax, social security, payroll and employment law.
The terms and acronyms you meet on payslips, tax and employment documents in South Africa. Figures are for 2026; the calculations are on South Africa's HR data page and in the take-home pay calculator.
BCEACCMACOIDADepartment of Employment and LabourEarnings thresholdEMP201EMP501 / IRP5LRAMedical scheme fees tax creditPAYEPrimary rebateProbationPublic holidaysRetirement fund contribution deductionRetrenchmentSARSSDLSETATax year (year of assessment)UIF
A monthly credit against PAYE for an employee who pays medical scheme (private health insurance) contributions: R376 a month for the taxpayer and the first dependant in the 2027 tax year. Employers apply it through payroll when the employee contributes to a scheme. Source
The income tax employers withhold from each pay run using SARS's tax deduction tables and pay to SARS within seven days after the end of the month. For 2026/27 the rates run from 18% up to R245,100 to 45% above R1,878,600. Source
An amount every individual subtracts from the income tax calculated on their taxable income: R17,820 for the 2027 tax year, with extra rebates from age 65 and 75. It means no tax is due below R99,000 a year for someone under 65. Source
Contributions to a pension fund, provident fund or retirement annuity are deductible up to 27.5% of remuneration or taxable income, capped at R430,000 a year in the 2027 tax year. Retirement funding is not compulsory but is part of most white-collar packages. Source
An employer-only levy of 1% of total payroll, with no ceiling, that funds workplace training. Employers whose payroll is not expected to exceed R500,000 a year are exempt. Source
South Africa's tax year runs from 1 March to the end of February and is named after the year it ends: the 2027 tax year is 1 March 2026 to 28 February 2027. New rates from the February Budget apply to payroll from 1 March. Source
The law under which employers pay an annual assessment to the Compensation Fund to cover work injuries and occupational diseases. The rate depends on the industry class; employees pay nothing. Source
The State fund that pays unemployment, illness, maternity and parental benefits. Employee and employer each contribute 1% of remuneration up to R17,712 a month (R212,544 a year), so at most R177.12 each a month. The employer pays the 2% total to SARS with PAYE on the EMP201. Source
The monthly employer declaration of PAYE, UIF and SDL deducted or due. It must be filed and paid within seven days after the end of the month; if that day falls on a weekend or public holiday, by the last business day before it. Source
The EMP501 is the employer's reconciliation of a period's EMP201 declarations and payments, filed for the full tax year (1 April to 31 May 2026 for the 2026 tax year) and for the interim six months. It is submitted with an IRP5 tax certificate for each employee, which SARS uses for the employee's assessment. Source
Fourteen public holidays in 2026, including 4 November (local government election day) declared by the President. A holiday on a Sunday moves to the Monday (Women's Day, 9 August 2026); one on a Saturday is not moved. Source
The law setting minimum terms: 45 ordinary hours a week, 21 consecutive days' annual leave (15 working days on a five-day week), notice of 1 to 4 weeks by length of service, and severance of 1 week's pay per completed year on retrenchment. Source
An annual pay level set by the Minister of Employment and Labour under BCEA s.6(3). Employees earning above it lose the BCEA rules on working hours, overtime pay and rest periods, so for most white-collar professionals these follow the contract. Source
The law on dismissal, trade unions and collective bargaining. Every dismissal needs a fair reason (conduct, capacity or operational requirements) and a fair procedure from the first day of employment, including during probation. Source
South African law sets no maximum: the period must be fixed in advance, be reasonable for the job and be extended only for a reason connected with its purpose. A probationer can be dismissed only for poor performance after evaluation, guidance and a chance to improve. Source
Dismissal for the employer's operational requirements (economic, technological or structural reasons). The employer must consult on alternatives and selection criteria under LRA s.189 (s.189A for large-scale cases) and pay at least 1 week's pay per completed year of service as severance. Source
The State body that hears unfair dismissal disputes, which must be referred within 30 days. It first conciliates, then arbitrates; reinstatement is the main remedy, otherwise compensation of up to 12 months' pay (24 months if the dismissal is automatically unfair). Source
The ministry that administers the BCEA, the Unemployment Insurance Fund and the Compensation Fund, sets the earnings threshold and sends labour inspectors to check compliance. Source
South Africa's tax and customs authority. Employers register with SARS for PAYE, UIF and SDL on one application, declare and pay all three monthly, and reconcile them twice a year. Source
The industry training body to which the Skills Development Levy collected by SARS is distributed. Employers deal with the SETA for their sector on workplace training and training grants. Source
For Japan, see the Japan HR Glossary.