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What does an employee actually cost?
UIF, SDL, COIDA, leave, public holidays, sick cover, bonus provision — the statutory and structural costs that sit on top of every gross wage in South Africa, calculated in one pass.
True Cost of an Employee
The wage is where the cost starts, not where it ends.
Enter a gross monthly wage. We add the statutory contributions and the paid time most budgets forget — and show what the employer actually pays.
National minimum wage reference: R30.23/hour.
Class rates vary by industry — edit to match your assessment.
Editable estimate for covering paid sick absence.
| Cost line | Per month |
|---|---|
| Gross wageThe number most budgets stop at | R8 500,00 |
| UIF (employer 1%)On remuneration up to R17 712/month | R85,00 |
| Skills Development Levy (1%)Payroll over R500 000/year | R85,00 |
| COIDA assessment (1%)Class rates vary — edit to match yours | R85,00 |
| Annual leave provision15 paid working days spread over the year | R490,38 |
| Public-holiday provision~12 paid public holidays per year | R392,31 |
| Sick-leave cover provisionEditable estimate for absence cover | R170,00 |
| True monthly cost to employer | R9 807,69 |
Annual cost
R117 692,28
Effective multiplier
1.154×
Every R1.00 of wage costs R1.15.
Employee UIF deduction
R85,00
Withheld from the worker — not an employer cost.
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This is what carrying the employment yourself costs — before recruitment, replacement, discipline, payroll admin and IR risk. A workforce plan puts all of that on our side of the line, priced in writing.
Rates as at 2026-03. Guidance only — not legal or financial advice. Sectoral determinations, bargaining councils and your COIDA class rate can change the numbers; confirm figures that matter with your advisor.
Common questions.
What does an employee really cost in South Africa beyond the gross wage?
On top of the gross wage the employer carries UIF (1% of remuneration up to the ceiling), the Skills Development Levy (1% where annual payroll exceeds R500 000), the COIDA assessment for the industry class, and the cost of paid non-working time — around 15 working days of annual leave, roughly 12 paid public holidays, sick-leave cover and any 13th cheque. Together these typically add 15–25% to the wage bill.
Is UIF calculated on the full salary?
No. Both the employer and employee contributions of 1% are calculated on remuneration up to a monthly ceiling (R17 712 as at the rates date shown on this page). Above the ceiling the contribution is capped.
Is the COIDA assessment rate the same for every company?
No. COIDA assessment tariffs are set per industry class — higher-risk work carries a higher rate. This calculator defaults to 1% but the field is editable; confirm your class rate with the Compensation Fund.