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Gross salary vs what's in your bank account

July 17, 2023
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Aron Samuels
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Aron Samuels

Have you noticed that your take home pay can be a few thousand rand less than your after tax income?

Have you noticed that your take home pay can be a few thousand rand less than your after tax income?

Heres why

Each month you have a specific set of deductions that reduce your take-home pay. Often they can be:

  • Employer pension/Provident Fund 
  • Medical Aid 
  • Employer Group Insurance benefits 

This formula will give you your take-home pay:

GROSS SALARY TAX DEDUCTIONS = TAKE-HOME PAY

What about that tax amount?

Another important factor that needs to be top of mind is tax  this is the amount we pay over to the government each month.

Ive put together a tax table which shows you your after-tax income per income bracket. Here are some key assumptions we make which may impact your final take-home pay:

  • This table pertains to the 2022/23 year
  • It considers someone under the age of 65
  • No deductions have been taken into account

 

WE PAY A LOT OF TAX! (Are you thinking that too?!)
Youll soon realise that this is a rise-by-size story and unfortunately there is little we can do to change the tax amount for your income bracket. 

BUT HERES SOME REAL GOOD NEWS! Did you know there are strategies that you can put in place to reduce the amount of tax you actually pay? These strategies are accessible and affordable regardless of your age or income level.

In other words, you can save money + reduce the tax you pay each month. 



 


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