Cost to company calculator
What a cost-to-company (CTC) package pays you each month after retirement and medical aid contributions, PAYE and UIF, using SARS tables for the 2026/27 tax year.
Take-home pay
R 28 320per month
Of your R 40 000 package, R 34 500 is cash salary. Take-home is 71% of the package, and R 5 500 goes to your retirement fund and medical aid.
Your package
| Cost to company | R 40 000,00 |
| Retirement fund contribution | −R 3 000,00 |
| Medical aid | −R 2 500,00 |
| Basic salary | R 34 500,00 |
Your monthly payslip
| Basic salary | R 34 500,00 |
| PAYE (income tax) | −R 6 002,75 |
| UIF | −R 177,12 |
| Take-home pay | R 28 320,13 |
PAYE is worked out on R 40 000 a month: your salary plus the contributions, which count as taxable fringe benefits. The retirement contribution is then deducted, up to 27,5% of income. Medical tax credits of R 752 a month reduce the tax.
What you cost your employer
| Your package | R 40 000,00 |
| Employer's UIF (1%) | R 177,12 |
| Skills Development Levy (1%) | R 400,00 |
| Total cost to the employer | R 40 577,12 |
SDL applies to employers whose salaries total more than R 500 000 a year.
What cost to company means
A cost-to-company (CTC) package is everything your employer spends on you: your basic salary plus its contributions to your retirement fund and medical aid, and sometimes its own UIF (1%) and Skills Development Levy (1%). Only the basic salary reaches your payslip as cash.
The employer's retirement and medical aid contributions are taxable fringe benefits: SARS adds them to your income. The retirement contribution is then deductible as if you'd paid it yourself, up to 27,5% of income and R 430 000 a year, and medical aid earns the usual tax credits (R 376 a month each for the first two people, R 254 for each other person).
Comparing offers
Two packages with the same CTC can pay quite different take-home amounts. Compare the take-home, but also count the retirement contribution as savings that belong to you.
UIF is 1% of pay up to R 17 712 a month, from you and again from your employer. Bonuses, allowances and other benefits aren't included here.
Read the guide: Cost to company vs gross salary