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Pay components
Earnings, allowances, deductions and fringe benefits that make up an employee pay structure.
Accommodation fringe benefit The accommodation fringe benefit is the taxable value of housing an employer provides to an employee, added to remuneration under a formula or actual cost.Acquisition of asset below value This fringe benefit arises when an employee receives an asset from the employer for free or at less than its market value, taxed on the shortfall.Back pay Back pay is remuneration owed for a past period but paid later - for example an increase backdated to an earlier month - with its own PAYE treatment.Basic salary Basic salary is the fixed, recurring portion of an employee's pay before allowances, overtime, bonuses or deductions are added or subtracted.Bonus A bonus is a discretionary or contractual lump-sum payment, such as an annual or performance bonus, that is fully taxable and often annualised for PAYE purposes.Cellphone allowance A cellphone allowance is a fixed amount toward an employee's phone costs, generally taxable as remuneration unless it is a reimbursement of business use.Commission Commission is variable pay calculated as a percentage of sales or output, fully taxable through PAYE and typically annualised because it fluctuates period to period.Company car fringe benefit The company car fringe benefit is the taxable value of an employee's private use of an employer-provided vehicle, calculated as a percentage of the vehicle's determined value each month.Defined benefit fund A defined benefit fund is a retirement fund where the benefit is set by a formula of salary and service, with the employer carrying the funding risk.Defined contribution fund A defined contribution fund is a retirement fund where the eventual benefit depends on the contributions paid in plus investment growth, not a set formula.Deemed-remuneration dividends (s10) Certain dividends are taxed as remuneration rather than being exempt, where they arise from an employment share scheme and fall outside the dividend exemption.Entertainment allowance An entertainment allowance is an amount toward client or business entertainment costs, fully taxable as remuneration with no automatic exclusion.Fringe benefit A fringe benefit is a non-cash benefit an employer provides, such as use of a company car or low-interest loan, taxed via PAYE on a value SARS prescribes for that benefit type.Gratuities A gratuity is a lump-sum payment such as a long-service or retirement award, often taxed under special lump-sum rules and a SARS directive.Hybrid fund A hybrid fund is a retirement fund that mixes defined contribution and defined benefit features, sharing risk between the employer and the member.Labour broker remuneration Labour broker remuneration is the amount paid to a labour broker for supplying workers, on which the client must withhold PAYE unless the broker holds an IRP30 exemption.Leave pay Leave pay is the normal pay an employee receives while on leave they have actually taken, as opposed to leave cashed out.Leave payout A leave payout is cash paid for accrued but untaken annual leave, usually on termination, calculated at the employee's rate of pay.Low-interest loan fringe benefit The low-interest loan fringe benefit is the taxable value of the interest an employee saves on an employer loan charged below the SARS official rate.Medical aid contribution A medical aid contribution is the employee and employer payment toward a registered medical scheme, generating a Medical Tax Credit that reduces PAYE rather than taxable income.Notice pay Notice pay is pay given in place of a notice period the employee does not work, when employment ends without the full notice being served.Overtime pay Overtime pay is the premium-rate compensation owed to qualifying employees for hours worked beyond their ordinary daily or weekly hours, set by the Basic Conditions of Employment Act.Pay component A pay component is a single line on a payslip - an earning, deduction, contribution or fringe benefit - each with its own tax treatment and SARS source code.PBO donation (payroll giving) A PBO donation is an amount an employee donates to a public benefit organisation through the payroll, which can reduce PAYE where a Section 18A receipt is issued.Pension fund contribution A pension fund contribution is the employee and employer payment into an employer-sponsored pension fund, deductible from taxable income up to a shared cap with other retirement contributions.Performance bonus A performance bonus is a variable, usually discretionary payment tied to individual or company performance, taxed as a periodic earning.Petrol card fringe benefit (80%) The petrol card fringe benefit is the taxable value of employer-funded fuel, with 80% included for PAYE like a travel allowance unless business use is higher.Provident fund contribution A provident fund contribution is a retirement contribution to a provident fund, now taxed like a pension fund contribution with its own IRP5 source codes.Reimbursive travel allowance A reimbursive travel allowance reimburses an employee per business kilometre travelled, taxed differently from a fixed monthly travel allowance.Release from debt The release from debt fringe benefit arises when an employer cancels or writes off an amount an employee owes, taxed as the value of the debt released.Restraint of trade payment A restraint of trade payment compensates an employee for agreeing not to compete after leaving, and is fully taxable as remuneration.Retirement annuity contribution A retirement annuity contribution is an employee's payment into a personal retirement annuity, deductible from taxable income up to a SARS-set percentage cap.Savings deduction A savings deduction is a voluntary amount an employee chooses to have withheld from pay and paid into a savings arrangement.Severance pay Severance pay is the statutory minimum payment owed to an employee dismissed for operational requirements, taxed under a tax directive rather than ordinary PAYE.Share options (s8A) Share options under Section 8A are gains an employee makes from an employer share scheme, treated as remuneration and subject to PAYE.Special remuneration Special remuneration is irregular remuneration that SARS treats under specific source codes, separate from regular salary and standard allowances.Subsistence allowance A subsistence allowance covers an employee's meals and incidental costs when away from home overnight on business, free of PAYE up to SARS deemed amounts.Taxable allowance A taxable allowance is a regular payment on top of basic salary, such as a cellphone or housing allowance, that is fully included in taxable income for PAYE purposes.13th cheque A 13th cheque is a guaranteed extra month's pay, usually paid in December, taxed as a periodic earning and spread over the year for PAYE.Tool allowance A tool allowance is an amount paid toward tools an employee needs for their job, generally taxable as remuneration when paid as a flat allowance.Travel allowance A travel allowance is a recurring payment toward an employee's business travel costs that SARS includes in taxable income at a reduced rate, reconciled against actual business kilometres at year end.Wage (hours-based) A wage is pay calculated from hours worked times an hourly rate, the basis for an employee paid by the hour and the figure tested against the minimum wage and ETI.
