PAYE & SDL Thresholds
2 min read — Updated February 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:
- Annual tax threshold (under 65): R95,750 (~R7,979/month)
- Annual tax threshold (65–75): R148,217
- Annual tax threshold (over 75): R165,689
If your employee earns below R7,979/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.
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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