Net Take-Home Difference
+R 133 640,00
Package B pays more after tax
Monthly difference: R 11 136,67
How do I compare two salary offers?
Enter both gross salaries to see the after-tax take-home pay for each. The higher gross salary does not always mean proportionally more take-home due to progressive tax brackets.
What is cost-to-company (CTC)?
In South Africa, CTC includes your gross salary plus all employer contributions (UIF, SDL, pension, medical aid). This calculator compares gross salaries before employer contributions.
Why is the tax difference larger than the salary difference?
South Africa uses progressive tax brackets. A higher salary may push more income into higher brackets (up to 45%), meaning the marginal tax on the increase is higher than your average rate.
Compare take-home pay across different salary levels and understand what affects the difference
Why does the same salary give different take-home pay?
Take-home pay varies based on your age (which affects rebates and thresholds), medical aid membership (which provides tax credits), retirement fund contributions (which are tax-deductible), and whether you have other income sources. Two people earning R500,000 can have different take-home pay if one contributes to a pension fund and the other does not.
How do South African salaries compare by experience?
Entry-level graduates typically earn R180,000 to R300,000 per year. Mid-career professionals with 5-10 years experience earn R350,000 to R600,000. Senior managers and specialists earn R600,000 to R1,200,000. Executive-level salaries range from R1,200,000 to R3,000,000+. These figures vary significantly by industry and location.
How much more take-home pay does a raise give me?
Because of progressive tax, each raise gives you less take-home than you might expect. A R50,000 raise from R300,000 to R350,000 adds about R34,500 to your take-home (31% marginal rate). The same R50,000 raise from R700,000 to R750,000 adds only R30,000 (39% marginal rate). Higher earners keep a smaller percentage of each additional rand.
What is the average salary in South Africa?
According to Statistics South Africa, the median monthly salary is approximately R7,000 to R8,000, while the average (mean) is higher at about R24,000 per month due to high earners skewing the figure. This means half of workers earn less than R8,000 per month. In professional occupations, the median is significantly higher at R25,000 to R40,000 per month.
How do salaries differ between cities?
Johannesburg and Sandton offer the highest salaries, typically 10-20% above the national average for the same role. Cape Town salaries are similar to Johannesburg for tech and creative industries but lower for financial services. Durban and Pretoria are 5-15% below Johannesburg. Smaller cities and rural areas can be 20-30% lower. However, the cost of living also varies.
Should I compare gross or net salary?
Compare net (take-home) salary for the most accurate picture of your spending power. Two jobs might offer the same gross salary, but if one provides a better medical aid or higher employer pension contribution, your take-home will differ. Also consider total cost to company (CTC) packages, which bundle salary, benefits, and employer contributions into one number.
What is a cost-to-company (CTC) package?
CTC includes your gross salary plus employer contributions to medical aid, retirement fund, UIF, and other benefits. A R600,000 CTC package might break down as R480,000 gross salary, R60,000 medical aid, R48,000 retirement fund, and R12,000 in other benefits. Your take-home pay is calculated from the gross salary portion after PAYE and employee deductions.
SARS-Aligned: Based on 2025 SARS rates and thresholds. For personal advice, speak to a qualified tax practitioner.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms