When you start working and earning a salary, you will get a payslip. You will notice some deductions and new terms which you need to be aware of. Knowing what to expect will help you budget better and be financially capable as well as ease some of the stress you may experience.

Check out our top tips below:

Your gross salary is the amount of money before any deductions. Your net salary is the amount of money after deductions. Always budget based on your net salary as this is what you will receive.

Your payslip is made up of earnings and deductions 

Earnings = money you have earned that month, including your basic salary as well as any overtime and allowances.

Deductions = money that gets taken off your earnings, some of these are compulsory (such as tax (PAYE), UIF and a pension fund). Some are contractual where your employer is asked to make these deductions by a court order such as a garnishee order (also called an EAO) and some deductions are voluntary (such as a union subscription deduction). 

TOP TIP: Have a look at our summary here for more detail on the different deductions you might come across.