1. What Is Cost To Company?

Cost To Company (CTC) represents the total amount an employer spends on an employee in South Africa, including basic salary, benefits, and statutory contributions like UIF and SDL for 2025.

2. How Does The Calculator Work?

The calculator uses the CTC formula:

Where:

• \( Basic\ Salary \) — Employee's base salary in ZAR
• \( Benefits \) — Additional benefits and allowances in ZAR
• \( UIF \) — Unemployment Insurance Fund contribution (1% of basic salary)
• \( SDL \) — Skills Development Levy (1% of basic salary)
• \( Employer\ Contributions \) — Additional employer contributions in ZAR

Explanation: This calculation provides the total employment cost to the company, including all statutory obligations under South African labor law for 2025.

3. Importance Of CTC Calculation

Details: Accurate CTC calculation is crucial for budgeting, financial planning, compliance with South African labor laws, and understanding the true cost of employment.

4. Using The Calculator

Tips: Enter basic salary in ZAR, benefits in ZAR, and employer contributions in ZAR. All values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What Is UIF And Why Is It Included?
A: UIF (Unemployment Insurance Fund) is a mandatory 1% contribution from employers to provide short-term relief to workers when they become unemployed.

Q2: What Is SDL And Who Pays It?
A: SDL (Skills Development Levy) is a 1% levy paid by employers to fund education and training in South Africa.

Q3: Are There Any Exemptions From These Contributions?
A: Some small businesses may qualify for SDL exemptions, but UIF generally applies to all employers.

Q4: How Often Should CTC Be Calculated?
A: CTC should be calculated during salary reviews, budgeting cycles, and when making new hiring decisions.

Q5: Does CTC Include Employee Tax Deductions?
A: No, CTC represents employer costs only. Employee tax deductions (PAYE) are separate and deducted from the employee's salary.