Gross to net Payroll Engine South Africa

G2N Nova is the premier Gross to Net Engine South Africa relies on for real-time, 100% accurate payroll calculations. Built specifically to meet the complexities of South African payroll, G2N Nova ensures precise gross-to-net processing across all industries—while also supporting payroll operations in over 100 countries globally.

What makes G2N Nova unique is its privacy-first architecture. It calculates payroll entirely within your systems, without storing or accessing any employee-identifiable information. This design not only enhances security but also ensures full compliance with South Africa’s Protection of Personal Information Act (POPIA).

By eliminating the need to transfer sensitive data, G2N Nova allows South African businesses to streamline payroll while protecting employee privacy. Whether you’re managing complex tax regulations, variable earnings, or statutory deductions, this Gross to Net Engine South Africa offers a secure, scalable, and compliant solution.

Request a demo today to experience the future of payroll with G2N Nova—the trusted choice for accurate and compliant gross-to-net payroll in South Africa.

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Gross to net payroll tax engine for South Africa

Looking for a reliable Payroll Tax Engine South Africa? G2N’s cloud-based platform offers real-time, automatic updates to ensure your payroll stays in full compliance with South African tax regulations. Seamlessly integrating with your existing HCM, ERP, or WFM systems, our solution provides a hassle-free experience for payroll tax calculations and updates.

• Keep your current systems and continue managing payroll without disruption.
• Leverage a plug-and-play Payroll Tax Engine South Africa designed exclusively for continuous, accurate tax updates.

Ensure accuracy and compliance with every payroll cycle.

Solutions

• HCM/ERP/WFM Systems: G2N integrates seamlessly with all major HCM, ERP, Time, Pay, and Attendance systems, allowing South African organizations to continue using their existing infrastructure without disruption. Powered by a robust Tax Engine South Africa, G2N ensures your payroll complies with local tax laws, providing real-time, accurate payroll processing every time.
• System Integrators: For system integrators, G2N simplifies the addition of cross-border payroll functionality to your platforms. With the power of the Tax Engine South Africa, you can offer tailored, compliant payroll solutions to your clients, all while maintaining full control over the user experience and ensuring smooth, accurate payroll management across borders.
• Enterprises: G2N’s unified platform simplifies payroll management for South African enterprises, helping you eliminate complex processing tasks. Powered by the Tax Engine South Africa, it guarantees accurate tax calculations and compliance with local regulations, saving time and resources so you can focus on scaling your business, enhancing your products, or taking that well-deserved vacation!
• SMEs: Perfectly suited for South African SMEs, G2N provides flexible and scalable payroll solutions. With a powerful Tax Engine South Africa, G2N accommodates your expanding workforce and evolving compliance needs—from small teams to 120,000 employees—ensuring accurate, real-time gross-to-net payroll processing as your business grows.
• Service Providers: For payroll service providers, G2N offers a trusted, seamless platform powered by the Tax Engine South Africa, delivering precise payroll tax calculations and compliance with South African tax laws. Focus on growing your business and serving your clients, knowing that your payroll solutions are handled with accuracy, security, and efficiency.

How It Works

G2N Nova is South Africa’s most advanced Payroll Calculator, built to handle complex payroll environments with precision, speed, and full compliance. Designed for seamless integration with your existing HCM, ERP, or time-tracking systems, G2N Nova transforms how payroll is managed—from input to payout.

Input

• Employee Data: G2N Nova processes essential employee information such as salaries, benefits, tax status, and other personal details, ensuring accurate and individualized payroll outcomes.
• Leave Management: Captures and processes leave, absences, and public holidays in accordance with South African labour laws and internal company policies.
• Time & Activity Tracking: Monitors employee work hours, shifts, attendance, and overtime to reflect true time-based earnings—automatically feeding this into payroll calculations.

G2N Nova Process

• Local Statutory Filing: Automatically aligns with South African statutory bodies (like SARS and UIF) for accurate filing, tax submissions, and compliance reporting.
• South African Payroll Compliance: Backed by a local compliance team, G2N Nova stays updated with South African tax codes, thresholds, and labour regulations—ensuring that every payroll run is fully compliant.
• Gross to Net Payroll Calculation: G2N Nova’s real-time Payroll Calculator South Africa engine computes all elements of gross-to-net pay, including tax, UIF, SDL, PAYE, deductions, and contributions—accurately and instantly.

Output

• General Ledger (GL) Entries: Provides clean, auditable payroll data entries for financial reconciliation and reporting within your accounting systems.
• Treasury Reports: Generates treasury-ready reports to support cash flow planning and payroll fund allocations.
• Bank File Generation: Creates secure bank files for salary transfers and statutory payments, compatible with South African banking systems.
• Employee Payslips: Delivers digital payslips detailing gross earnings, deductions, benefits, taxes, and net pay—all compliant with South African payroll standards.
• Built for South African Businesses: G2N Nova is flexible, scalable, and designed for end-to-end payroll automation. Whether you’re running payroll for 5 or 50,000 employees, this Payroll Calculator South Africa provides a secure, transparent, and compliant solution—streamlining payroll operations locally and supporting growth globally.

Features of G2N Payroll Engine South Africa

Benefits

Streamlined Payroll Processing

Enjoy fast, accurate, and efficient payroll runs with G2N Nova. Designed to handle South Africa’s complex tax laws and statutory requirements, it ensures fully compliant salary calculations without delays or manual intervention.

Seamless Integration with Local Systems

G2N Nova integrates effortlessly with South African HR, ERP, and payroll systems—reducing manual work, minimizing errors, and ensuring real-time data flow between platforms.

No More Manual Data Extraction

Automate the entire payroll data process. From earnings and leave to tax deductions and contributions, G2N Nova eliminates manual data entry and extraction, significantly reducing the risk of costly human errors.

Cross-Border Payroll Management

Whether you’re processing payroll for employees in South Africa or across multiple countries, G2N Nova simplifies global payroll operations while maintaining full compliance with each country’s tax and labor laws.

Secure, Scalable Payroll Engine for South African Businesses

The G2N Nova Salary Calculator South Africa ensures secure, compliant payroll processing at both local and international levels. Backed by leading data security certifications and real-time calculation capabilities, it supports your growth while keeping payroll error-free and compliant.

Everything you need to know about Gross to Net Calculation in South Africa

Understanding how gross salary is converted into take-home pay is critical for both employers and employees in South Africa. Gross-to-net calculation involves more than simply deducting income tax; it requires a thorough grasp of statutory deductions, personal financial contributions, tax brackets, and employer subsidies. At Mercans, our advanced G2N Payroll Engine is tailored to South Africa’s complex payroll landscape, providing accurate, real-time salary computations fully aligned with the latest 2025/2026 tax tables and budget updates.

Our salary and income tax calculator, powered by G2N, simplifies this process by giving you a transparent view of your full salary structure and how various earnings and contributions affect your take-home pay.

Age

Your age affects your tax threshold in South Africa, as SARS grants increased tax rebates to senior citizens. These age-based rebates lower your annual tax liability, directly impacting your net income.

• Under 65: Standard primary rebate applies.
• Between 65 and 75: Qualify for an additional secondary rebate.
• Over 75: Benefit from both secondary and tertiary tax rebates, significantly reducing tax liability.

Mercans’ G2N engine automatically adjusts tax calculations according to your age bracket to ensure full compliance and accuracy.

Pay Cycle

South African payroll can be calculated on different pay cycles, and your selection affects how your income and deductions are distributed and taxed:

• Monthly: The most common payroll cycle. Tax and deductions are applied monthly based on cumulative earnings.
• Yearly: Used for annual forecasting or when analyzing year-end bonus impact.
  

With Mercans’ payroll tools, you can simulate both cycles to compare outcomes and better plan your finances.

Earnings

Earnings are the core component of gross salary and may include several variable elements beyond basic income:

• Monthly Salary: The fixed amount agreed upon with your employer before deductions.
• Travel Allowance: A portion may be tax-free depending on how it is structured and used for business travel.
• Other Allowances: Includes housing, cell phone, or subsistence allowances—some of which may be taxable.
• Annual Bonus: Often taxed at a higher rate due to its once-off nature and impact on annual income brackets.
  

Mercans’ G2N engine takes into account the latest tax treatment for each type of earning, ensuring accurate calculations in real-time.

Deductions and Contributions

These significantly influence your net salary and consist of statutory deductions and voluntary retirement or medical contributions.

Taxes in South Africa

Mercans delivers fully compliant, automated payroll solutions through its advanced Gross-to-Net (G2N) engine, purpose-built for South Africa’s complex legislative framework. Understanding mandatory payroll contributions is essential for businesses operating in the country. Below is a detailed overview of employer and employee obligations that influence payroll calculations and compliance requirements.

Employer Contributions in South Africa

Employers in South Africa are legally required to make several statutory contributions, each supporting the country’s social protection systems and workforce development initiatives. These payments are an integral part of every payroll cycle and must be calculated accurately and submitted on time.

Unemployment Insurance Fund (UIF)

Employers must contribute 1% of each employee’s monthly salary to the UIF, with a matching 1% deducted from the employee’s salary. This fund supports employees during periods of unemployment, illness, maternity leave, or adoption leave.

Skills Development Levy (SDL)

The SDL is calculated at 1% of the total monthly payroll, which includes salaries, wages, bonuses, commissions, and overtime. The collected funds are used to finance national training and development programmes via Sector Education and Training Authorities (SETAs). Employers with an annual payroll of less than R500,000 are typically exempt from this levy.

Compensation for Occupational Injuries and Diseases (COID)

Employers are required to pay an annual assessment to the Compensation Fund, which is based on the total earnings of their workforce and the inherent risk level of the job functions performed. All employers must submit a declaration of earnings by 31 March each year, covering the period from 1 March to the end of February.

Collective Bargaining Contributions

In certain sectors, employers must also make contributions under industry-specific collective agreements. These may include levies toward retirement funds, bargaining councils, or union-administered benefits.

Employee Contributions in South Africa

South African employees contribute to public funds primarily through PAYE (Pay As You Earn) and their portion of UIF. These contributions are deducted from gross earnings and are based on progressive tax tables and statutory requirements.

PAYE – Income Tax

Income tax in South Africa follows a progressive system. As of the 2025/2026 tax year, tax rates range from 18% for income up to R237,100 annually, to 45% for earnings exceeding R1,817,000. The system includes age-based rebates that reduce the tax burden for individuals aged 65 and older.

Tax rebates are as follows:

• Primary rebate: R17,235
• Secondary rebate (age 65+): R9,444
• Tertiary rebate (age 75+): R3,145
  

Tax thresholds for the 2025/2026 tax year are:

• Under 65 years: R95,750
• 65 years and older: R148,217
• 75 years and older: R165,689
  

UIF – Employee Portion

Each employee contributes 1% of their gross monthly salary to the UIF, matched by the employer for a total of 2%. This contribution ensures coverage for short-term income replacement during qualifying life events.

How Mercans Ensures Compliance

Mercans’ G2N Payroll Engine is built with full knowledge of South African tax legislation, including all employer and employee contributions. Our technology automates the complex calculations required to meet compliance standards and integrates directly with your existing ERP, HCM, or payroll platforms.

We help employers:

• Accurately calculate all statutory contributions
• Meet filing and reporting deadlines
• Stay updated with the latest changes from SARS and the Department of Labour
• Maintain full transparency in payslips and payroll records
  

Whether managing payroll for a domestic workforce or as part of a multinational operation, Mercans ensures that your payroll processes in South Africa are precise, efficient, and fully compliant.