South African Payslip & IRP5 Code Explainers
Confused by a code on your payslip or IRP5 certificate? Every SARS source code explained in plain English — with tax implications, worked examples and links to relevant calculators.
South African payslips and IRP5 certificates use SARS-defined numeric source codes to classify every type of income, allowance, fringe benefit and deduction. Understanding these codes helps you verify your payslip is correct, check your IRP5 before filing, and understand exactly how your take-home pay is calculated. Use the links below as each explainer goes live — or use our PAYE Calculator to see how these codes affect your net pay right now.
Frequently Asked Questions
What are the most common payslip codes in South Africa?
The most common SARS payslip codes on a South African payslip are: 3601 (basic salary), 3606 (commission), 3607 (overtime), 3701 (travel allowance), 3802 (company car fringe benefit), 3810 (medical aid fringe benefit), 4001 (pension fund contribution), 4003 (retirement annuity), 4005 (medical aid contribution) and 4102 (PAYE — income tax deducted). Most salaried employees see codes 3601, 4001 or 4003, 4005, 3810, and 4102 every month. The specific codes on your payslip depend on your employer’s payroll setup and your remuneration structure.
What is the difference between a payslip code and an IRP5 code?
They are the same SARS source codes. Your monthly payslip shows individual pay-period amounts under each code, while your annual IRP5 certificate shows the cumulative totals for the full tax year. For example, code 3601 on your January payslip shows that month’s salary; code 3601 on your IRP5 shows your total salary income from March to February. The codes are identical — only the period and totalling differ.
What does code 4102 mean on a South African payslip?
Code 4102 is the PAYE (Pay As You Earn) income tax deducted by your employer for the period. It is almost always the largest deduction on a South African payslip. The amount is calculated using the SARS progressive tax brackets, minus age-based rebates and any applicable medical aid tax credits. On your IRP5, the 4102 total represents the cumulative tax your employer paid to SARS on your behalf for the full tax year.
How many SARS payslip codes exist in South Africa?
SARS defines over 100 source codes across income, allowance, fringe benefit, lump sum and deduction categories. Most employees, however, only encounter 8 to 12 codes on a typical monthly payslip. The full code list is published annually in the SARS Guide for Employers in Respect of Employees’ Tax (IRP5/IT3a), updated with each tax year’s budget changes. PayTools covers the codes most commonly seen on South African payslips and IRP5 certificates.