Paying your first employee, the right way

Your first hire is a milestone — and a small pile of acronyms. Here's what each one means and when it applies.

PAYE — tax on their salary

Pay-As-You-Earn is the income tax you withhold from an employee's pay and hand to SARS on their behalf. It scales with what they earn.

UIF — the unemployment safety net

Unemployment Insurance Fund contributions are shared: a portion from the employee, a matching portion from you, up to a monthly ceiling.

SDL — the skills levy

Skills Development Levy applies once your annual payroll passes a set amount. Below it, you're exempt.

Getting payroll right isn't about being an accountant. It's about a system that does the maths the same way every month.

The IBIS team

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