Evaluating a job offer in South Africa goes beyond the headline salary. To make an informed decision you must understand total rewards (cash + benefits), how SARS and other statutory deductions affect your take-home pay, and the real value of employer-provided benefits. This guide gives you a practical framework, questions to ask, quick calculations and negotiation priorities so you can compare offers confidently.
What to check first: the essential components of any SA job offer
Quick scan — ensure the offer covers these elements and that amounts/percentages are explicit:
- Base salary (annual and monthly) — Is it guaranteed or subject to review?
- Bonus/commission structure — Target vs guaranteed, payment frequency, clawback clauses.
- Retirement fund (pension/provident) contributions — Employer and employee %.
- Medical aid / health benefits — Employer contribution and scheme details.
- Leave, sick & family responsibility leave — Annual leave days and carry-over rules.
- Notice period & probation — See details in contract for termination risk.
- Allowances & fringe benefits — Car, travel, phone, housing, relocation.
- Statutory deductions & payroll taxes — PAYE, UIF, SDL, and any taxable benefits.
- Learning & development, flexibility, hybrid/remote policy — non-monetary but high value.
For a deeper look at retirement, UIF and medical aid mechanics, see: Understanding UIF, Pension/Provident Funds and Medical Aid in SA Job Offers.
Understanding "Total Rewards" — a practical breakdown
Total rewards = cash compensation + employer-paid benefits + indirect rewards (training, flexibility, career progression).
| Reward type | What it is | Typical employer contribution | Tax treatment / notes |
|---|---|---|---|
| Base salary | Annual guaranteed pay | N/A | Fully taxable via PAYE |
| Bonus / commission | Variable pay based on performance | 0–30%+ of base depending on role | Taxed as income; check payment frequency & clawbacks |
| Retirement fund contributions | Employer pension/provident contributions | 6–15% common | Employer contributions not taxed in-hand; tax rules apply at withdrawal |
| Medical aid subsidy | Employer pays part of medical scheme premiums | 0–100% of premium | Not taxed as cash; you may still claim medical tax credits |
| Group risk cover | Life, disability, AD&D | Usually employer-paid | Group life may trigger taxable lump sum implications on pay-outs |
| Car & travel allowances | Employer provided car or travel allowance | Fixed rand amount or company car | Car fringe benefits and travel allowances can be taxable |
| Relocation / sign-on | Lump-sum moving support or Bonus | One-off | Often taxable unless structured |
| Training & development | Courses, certifications | Employer-funded | Non-taxable benefit if job-related |
Keep in mind: what looks like a large employer contribution might have strings attached (e.g., bonding periods for training or clawback if you resign soon after a relocation payment).
SARS, PAYE and other statutory deductions — how they affect net pay
When evaluating net pay, account for:
- PAYE (Pay-As-You-Earn) — on taxable income including salary, bonuses and certain benefits.
- UIF (Unemployment Insurance Fund) — employee and employer contributions (statutory).
- SDL (Skills Development Levy) — employer-paid; not deducted from your salary but affects employer cost.
- Retirement & other payroll deductions — employee contributions to pension/provident funds reduce taxable income.
- Medical tax credits — you may get relief via medical scheme fee tax credits (MTC).
A simple calculation framework:
- Start with gross annual salary.
- Subtract employee retirement and pre-tax deductions.
- Apply PAYE (based on SARS brackets or a calculator).
- Subtract UIF and any other employee contributions.
- Result = estimated take-home pay.
Example (illustrative only — use actual SARS brackets or a calculator):
| Item | Annual (ZAR) |
|---|---|
| Gross salary | 480,000 |
| Employee pension contribution (8%) | -38,400 |
| Taxable income | 441,600 |
| Estimated PAYE (assume 25% for example) | -110,400 |
| UIF & other | -2,400 |
| Estimated net take-home | 328,800 (~27,400/month) |
Do not rely on the illustrative PAYE % above — consult up-to-date SARS tables or a net pay calculator: Cost-of-Living and Net Pay: Calculate Your Take-Home Salary in South Africa (SARS Considerations).
Taxable benefits & hidden value traps
Ask for clarity on:
- Whether car allowances are paid as a travel allowance (taxable) or company-leased car (fringe valuation).
- If the relocation package is grossed up or subject to PAYE.
- Medical aid: is the employer contribution included as income? (Usually not as cash, but check payroll coding.)
- Housing or accommodation: may be a taxable fringe benefit.
Questions to ask your prospective employer
Request written details of:
- Exact breakdown of monthly pay and annual total cost to company (CTC).
- Employer vs employee retirement percentages and vesting or withdrawal rules.
- Medical aid option names, contribution amounts and dependents covered.
- Bonus KPI metrics and payment timing. Any clawbacks?
- Any probation clauses, notice periods or non-compete terms. See: How Probation Clauses, Notice Periods and Bonus Structures Work in South African Contracts.
- If you’re negotiating scarce skills or relocation support, review: Negotiating Scarce Skills Premiums in South Africa: When and How to Request Market-Related Pay.
Prioritise what matters in negotiation
Decide your priorities before you negotiate:
- Do you need more net cash or is medical cover/retirement more valuable?
- Can you accept a slightly lower base salary for a higher annual bonus?
- For relocation, insist on grossed-up relocation support or reimbursement to avoid unexpected tax.
Use targeted language and practice scripts: see Negotiation Scripts for South African Candidates: Ask for More Pay, Medical Aid or Relocation Support.
Quick offer-evaluation checklist (score & decide)
Use this simple scoring: 1 (poor) — 5 (excellent). Weight items according to your priorities.
| Criteria | Weight | Score (1–5) | Weighted |
|---|---|---|---|
| Base salary | 30% | ||
| Net take-home (after SARS) | 25% | ||
| Medical & risk cover | 15% | ||
| Retirement contributions | 10% | ||
| Bonus & incentives | 10% | ||
| Flexibility / L&D / relocation | 10% | ||
| Total | 100% |
For a downloadable checklist and items to compare between offers, see: Sample Offer Evaluation Checklist for South African Job Seekers (Benefits, Leave, Flexibility, Learning).
Final steps: counteroffers, acceptance and onboarding
- If you need changes, make a single clear counteroffer prioritising the items that matter most (cash vs benefits). Guidance: Counteroffer Strategies and How to Accept or Decline a South African Job Offer Professionally.
- Time salary conversations carefully — advice here: Timing Your Salary Conversation: When to Discuss Pay During South African Interview Processes.
- Before signing, confirm all verbal promises are in writing (benefits, bonuses, relocation, sign-on).
Quick checklist: what to get in writing
- Total cost-to-company (CTC) breakdown.
- Bonus metrics and payment terms.
- Medical scheme name and employer contribution.
- Retirement fund details and employer contribution.
- Any relocation or sign-on agreements and repayment terms.
- Probation, notice period and any restrictive covenants.
Making the right decision means converting offer details into net value and career potential. Use the links above to benchmark salary, prepare scripts, and finalise your negotiation — then decide with confidence. Good luck with your interview preparation and offer evaluation!