A SIC code is a Standard Industrial Classification code - a number identifying the industry an employer operates in. SIC stands for Standard Industrial Classification, the system that groups businesses by economic activity.
What it means
SARS and Statistics South Africa use SIC codes to classify employers by sector. The code matters in payroll because some Employment Tax Incentive rules and reporting requirements depend on the industry. The current revision used in SARS reporting is SIC7, a distinct code set from earlier SIC versions, so the right revision must be used.
Where it fits in
The SIC code sits in the employer's profile and feeds ETI eligibility and EMP501-related reporting. It is one of several unrelated code systems in payroll - it has nothing to do with IRP5 source codes, nature-of-person codes or the internal employee code, despite all being called codes.
Key rules
- A Standard Industrial Classification code identifying the employer's industry.
- Affects ETI eligibility and statutory reporting.
- SARS uses the SIC7 revision, distinct from earlier SIC versions.
- Unrelated to IRP5 source codes, nature-of-person codes or the employee code.
