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
An actual payslip generated by wabill.
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: wabill
Instead of spreadsheets, create payslips on the wabill dashboard. Select the employee, set the pay period, and add your earnings and deduction lines. A professional BCEA-compliant PDF is generated instantly. Previous payslip data pre-populates for returning employees. Send it directly to your employee on WhatsApp. 10 free documents to start, then R49/month.
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. The wabill dashboard gives you a BCEA-compliant layout with all required fields, and pre-populates from previous payslips for returning employees.
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.
10 free documents. No card needed.