Employee details
Gross monthly salary before deductions
R
SA minimum: 15 working days per year (Basic Conditions of Employment Act)
R
R
Contractor details
What the contractor charges monthly
R
If VAT-registered, you pay the fee + 15% VAT. You can claim VAT back if your business is also VAT-registered.
Contractors are not paid for leave, public holidays, or sick days they don't work
Total employee cost
What the business actually pays annually
Annual gross salaryR 0
Employer UIF (1% capped)R 0
Employer SDL (1%)R 0
Annual bonusR 0
Leave costR 0
Medical aid (annual)R 0
Other benefitsR 0
Total annual costR 0
Effective monthly costR 0
Total contractor cost
What the business actually pays annually
Annual fee (excl. VAT)R 0
VAT paidR 0
VAT reclaimedR 0
No UIF / SDL / leaveR 0
No medical / bonusR 0
Net annual costR 0
Effective monthly costR 0
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⚠ Important SA legal note Misclassifying an employee as a contractor is a serious offence under the Labour Relations Act. SARS also scrutinises contractor arrangements. If a contractor works exclusively for you, has set hours, and uses your equipment, SARS may deem them an employee. Always get legal advice before contracting.