When it comes to landing your first job you may get overly excited about receiving you first pay without being aware of the deductions that will still be made.
This leaves a lot of graduates shocked when faced with the bottom line of their salaries and we’ve got some important info to share with you so you are fully prepared, come your first pay cheque!
For an individual under the age of 65 years (that’s you), the tax threshold is R77 808 (Between R0-R6 509 per month). This means that if your taxable income does not exceed this amount for the tax year, you should not be paying any income tax.
That said, you may still be liable for other mandatory deductions such pension, provident, retirement, medical aid, etc depending on your employer. You may ask your HR Department to explain this to you in detail if you have questions.
Need a breakdown of the tax you should be paying? Follow this list for the full tax table from SARS.
Still have tax related questions for us? Feel free to leave a comment on the section below so we can answer all your questions as you navigate this new world of employment.