How is a 13th cheque taxed in South Africa?

A 13th cheque is taxed as normal remuneration. SARS annualises the bonus with your other income, works out the annual PAYE and deducts the difference in the pay period the bonus is paid. Effectively: tax on (annual salary + bonus) minus tax on annual salary = PAYE on the bonus.

Is a 13th cheque compulsory in South Africa?

No. The BCEA does not require a 13th cheque. It is either a contractual entitlement (in the employment contract or collective agreement) or a discretionary bonus paid at the employer's option.

Is a 13th cheque the same as a performance bonus?

For tax purposes, yes — both are taxed as remuneration in the month paid. Contractually a 13th cheque is guaranteed (usually paid in December), while a performance bonus is discretionary and linked to results.

Does a 13th cheque affect UIF and SDL?

SDL is payable on the bonus at 1%. UIF is payable at 1% + 1%, but capped — if the employee's remuneration in that month exceeds R17,712, UIF is calculated on R17,712 only.

Can I spread the 13th cheque tax over the year?

Yes — most payroll systems let you accrue an estimated 13th cheque tax through the year so the December pay run does not have a large PAYE spike. The total tax for the year stays the same.

South Africa · SARS 2025/2026

13th cheque tax calculator (South Africa)

A 13th cheque is taxed as normal remuneration. SARS annualises it with your salary, recomputes the year's PAYE and deducts the difference in the bonus pay run. Use the calculator below with the current 2025/2026 tables.

How SARS taxes a bonus

Annualise the monthly salary (× 12) to get expected annual remuneration.
Add the 13th cheque / bonus to get total annual remuneration.
Compute annual PAYE on each figure using the 2025/2026 tables and rebate.
PAYE on the bonus = tax on (salary + bonus) − tax on salary.

Interactive 13th cheque tax calculator (2025/2026)

Enter your monthly salary, the bonus amount and your age. Uses the SARS 2025/2026 tables and age rebates.

Monthly salary (R)Gross basic per month × 12 = annual.13th cheque / bonus (R)The lump sum paid this month.AgeUnder 65 · 65+ gets secondary rebate · 75+ tertiary.

Annual salary: R 300 000,00
Annual salary + bonus: R 325 000,00
PAYE on salary alone (year): R 41 797,00
PAYE on salary + bonus (year): R 48 297,00
PAYE on the bonus: R 6 500,00
Net bonus in your account: R 18 500,00
Effective bonus tax rate: 26.0 %

Step-by-step SARS workings

Annual salary = monthly × 12 = R 300 000,00
Add bonus → total annual remuneration = R 325 000,00
Tax on annual salary (2025/2026 tables, minus rebate) = R 41 797,00
Tax on annual salary + bonus = R 48 297,00
PAYE on bonus = tax with bonus − tax without = R 6 500,00

Ignores UIF (1% capped at R17,712 remuneration in the bonus month), medical tax credits and retirement fund deductions — add those in the full PAYE calculator for a precise take-home.

Open full PAYE calculator Outsource your December payroll

Why the tax feels so high

The bonus gets taxed at your marginal rate — the bracket your top rand sits in — not your average rate. Someone in the 31% bracket loses roughly a third of the bonus to PAYE, plus 1% UIF (capped) and any medical/retirement deductions.

Should I spread bonus tax across the year?

Most payroll systems (SimplePay, Sage, PaySpace) can accrue a monthly bonus provision so the December pay run is smoother. The total tax stays the same, but the employee doesn't feel the full hit in one month.

Let Patuza run your December bonus payroll

We handle 13th cheque annualisation, PAYE, UIF & SDL, and IRP5 reconciliation so your December pay run lands right — every time.

Talk to a payroll specialist

Related guides & calculators

Full PAYE calculator →
Age rebates, medical credits and retirement caps.
UIF contributions →
1% + 1% split against the R17,712 ceiling.
Free payslip template →
BCEA-compliant CSV with earnings, deductions and YTD.
Severance pay calculator →
BCEA s.41 plus SARS lump-sum tax.

General information using SARS 2025/2026 tax tables. Not tax advice — final PAYE depends on your fringe benefits, allowances and deductions.