SA Wages Pro

PAYE & SDL Thresholds

2 min read — Updated September 2026

PAYE (Pay As You Earn)

PAYE is income tax deducted from an employee's salary. However, most domestic workers and low-wage employees fall below the tax threshold. These are the 2026/2027 tax year figures (1 March 2026 to 28 February 2027):

  • Annual tax threshold (under 65): R99,000 (~R8,250/month)
  • Annual tax threshold (65-74): R153,250
  • Annual tax threshold (75 and over): R171,300
  • Primary rebate: R17,820 per year - the amount every taxpayer's tax bill is reduced by

If your employee earns below R8,250/month, PAYE does not apply. SA Wages Pro shows a PAYE alert only when the threshold is exceeded.

SDL (Skills Development Levy)

SDL is a levy paid by employers to fund skills development. It's 1% of total payroll. However, employers with an annual payroll below R500,000 are exempt.

Most household employers and small businesses with 1-3 low-wage employees will be exempt from SDL.

SDL is an employer cost and is never deducted from the employee's pay. See "SDL: The Skills Development Levy" for the full detail.

What SA Wages Pro Does

SA Wages Pro monitors your total payroll and individual employee earnings. If PAYE or SDL thresholds are exceeded, you'll see an alert on the Compliance Dashboard with guidance on what to do next.

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