Most Domestic Workers Pay No Income Tax
For the 2026/2027 tax year, an individual under 65 earning less than R99,000 per year pays no income tax. Given that most domestic workers earn well below this threshold, the vast majority of domestic worker employers have no PAYE obligation to worry about. At the current minimum wage of R30.23 per hour, a domestic worker employed 45 hours per week earns approximately R5,894.85 per month — approximately R70,738 per year — below the tax threshold, meaning no PAYE applies.
When PAYE Does Apply
PAYE becomes applicable if a domestic worker's annual income exceeds the tax threshold. This could happen if they earn significantly more than the minimum wage, if they receive bonuses or overtime that push their annual income above the threshold, or if they work for multiple employers and their combined income exceeds the threshold. In these cases, the employer is responsible for calculating, deducting and paying PAYE to SARS on behalf of the employee.
UIF Is Not the Same as PAYE
UIF is deducted from every domestic worker's wages regardless of whether they earn above the tax threshold. PAYE is only deducted when the worker's income exceeds the annual tax threshold. Many employers confuse these two deductions — they are entirely separate obligations with separate registration requirements.
The Employer's Responsibility Where PAYE Applies
Where PAYE applies, the employer must register with SARS as a PAYE employer, calculate the correct monthly PAYE deduction, deduct it from the employee's wages, pay it to SARS by the 7th of the following month, issue an IRP5 certificate at year end, and submit an annual employer reconciliation to SARS.
The Difference Between the UIF Deduction and PAYE
Many domestic employers who are new to their obligations confuse the UIF deduction that appears on every payslip with PAYE. These are entirely different. The UIF employee contribution of 1% appears on every domestic worker's payslip regardless of their income level — it is a flat percentage contribution that applies from the first month of employment above the 24-hour monthly threshold. PAYE, by contrast, is a progressive income tax that only starts once a worker's annual income exceeds the personal income tax threshold (R99,000 per year for under-65s in 2026/2027). Most domestic workers never reach this threshold, meaning their payslip will show a UIF deduction and R0 for PAYE.
SARS Registration When PAYE Applies
If your domestic worker earns above the PAYE threshold, you as the employer must register with SARS as a PAYE employer. This registration is separate from and in addition to your UIF employer registration — the two systems are administered independently. Having a UIF employer registration does not give you SARS PAYE registration, and having SARS registration does not automatically create a UIF employer number. Both registrations must be completed independently where both obligations apply.
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