What is the Net Pay Simulator (NPS)?

NPS is Patuza's remuneration intelligence engine. It models South African take-home pay from a package structure using the current SARS tables, then benchmarks that net pay against comparable roles rather than comparing cost to company alone.

How is net pay modelled?

Each package is decomposed into pensionable salary, allowances, employer contributions and fringe benefits. PAYE is calculated on the resulting taxable income using the current SARS rates, rebates, medical scheme fees tax credits and retirement contribution caps, then UIF is applied against the statutory ceiling.

Can journalists and researchers cite this report?

Yes. The report and its aggregate findings may be cited with attribution to Patuza Payroll Specialists and a link to this page. Underlying client payroll data is never published or shared.

Is individual employer or employee data published?

No. All outputs are aggregated and anonymised. Employer-identifying and employee-identifying data stays inside the client's own workspace.

NPS remuneration research

South African Salary & Net Pay Report 2026

Most South African salary surveys compare cost to company. Employees experience net pay. This report explains how the Net Pay Simulator (NPS) models take-home pay from a package structure, what actually moves net pay, and how employers, HR teams and journalists can use and cite the findings.

What the report shows

Gross ≠ net

Two employees on identical CTC can differ materially in take-home pay

Retirement fund contributions, medical scheme fees tax credits, travel allowances and fringe benefits change the PAYE base before net pay is calculated.

Structure first

Package structuring moves net pay more than a small increase does

Shifting the pensionable-salary split or an allowance mix often produces a bigger net-pay change than an inflation-level increase on the same CTC.

Percentiles

Benchmarks are reported at P25, P50 and P75 on both CTC and net pay

Reporting net-pay percentiles alongside CTC percentiles exposes the cases where a market-competitive package still lands below market take-home.

Methodology in brief

Roles are matched to a job family and level so comparisons are like-for-like.
Each package is decomposed into pensionable salary, allowances, employer contributions and benefits.
PAYE is calculated on the taxable income using the current SARS tables, rebates and medical scheme fees tax credits.
Retirement contribution deductions are capped at the statutory percentage and annual ceiling.
UIF is applied against the statutory earnings ceiling; SDL is treated as an employer cost, not an employee deduction.
Results are aggregated to P25, P50 and P75 on both CTC and net pay, with small samples suppressed.

How employers use it

Test whether an increase budget actually lands where employees feel it.
Identify roles that are market-competitive on CTC but below market on take-home pay.
Quantify the cost of correcting an internal equity gap before committing to it.
Model promotion and band-movement scenarios before they reach an approval meeting.

Frequently asked questions

What is the Net Pay Simulator (NPS)?: NPS is Patuza's remuneration intelligence engine. It models South African take-home pay from a package structure using the current SARS tables, then benchmarks that net pay against comparable roles rather than comparing cost to company alone.
How is net pay modelled?: Each package is decomposed into pensionable salary, allowances, employer contributions and fringe benefits. PAYE is calculated on the resulting taxable income using the current SARS rates, rebates, medical scheme fees tax credits and retirement contribution caps, then UIF is applied against the statutory ceiling.
Can journalists and researchers cite this report?: Yes. The report and its aggregate findings may be cited with attribution to Patuza Payroll Specialists and a link to this page. Underlying client payroll data is never published or shared.
Is individual employer or employee data published?: No. All outputs are aggregated and anonymised. Employer-identifying and employee-identifying data stays inside the client's own workspace.

Cite this report

Patuza Payroll Specialists, “South African Salary & Net Pay Report 2026”, Net Pay Simulator (NPS), https://www.patuza.co.za/guides/south-african-salary-report. Media and researchers may quote these findings with attribution and a link. For commentary or a custom data cut, contact Patuza.

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