What is Code 3711 on a South African Payslip?
Computer allowance explained — why it is fully taxable, how it differs from a company-provided laptop, when deductions are possible, and what appears on your IRP5.
3711Code 3711 is a computer allowance — an amount paid by your employer for using your own computer or laptop for work. There is no prescribed tax-free rate. The full allowance is taxable income and PAYE is deducted monthly. A company-owned laptop provided for business use is generally not taxable at all.
What Code 3711 Means
Code 3711 is a computer allowance — an amount your employer pays you to compensate for using your personal computer, laptop, tablet, or related equipment for work. It is particularly common in remote-working and work-from-home arrangements where the employee uses their own device rather than employer-provided equipment.
Unlike travel and subsistence allowances, which have SARS prescribed rates that allow for tax-free treatment up to a limit, there is no equivalent for computer allowances. The full amount is taxable income in your hands, and your employer deducts PAYE before paying you. This is an important distinction that many employees — especially those who moved to remote work after the COVID-19 pandemic — do not realise.
The more tax-efficient alternative is for the employer to provide a company-owned device. A laptop or computer owned by the company and used primarily for business is not a taxable fringe benefit, meaning the employee gets the full benefit of the equipment without any PAYE cost.
Allowance vs Employer-Provided Device
Code 3711 Cash Allowance
Monthly amount paid to employee for using personal device. Fully taxable — PAYE deducted at marginal rate. Employee bears the tax cost on money they will largely spend on work equipment.
Employer-Provided Laptop
Company-owned device issued for business use. Not a taxable fringe benefit under SARS rules. Employee gets full use at zero tax cost. Asset remains on company books.
How It Affects Your Take-Home Pay
| Item | Amount |
|---|---|
| Monthly salary (code 3601) | R28,000 |
| Monthly computer allowance (code 3711) | R1,500 |
| Total monthly remuneration for PAYE | R29,500 |
| Approximate marginal rate | 26% |
| PAYE on computer allowance | ≈R390/month |
| Net received from R1,500 allowance | ≈R1,110/month |
In this example, a R1,500/month allowance yields only R1,110 in hand. Over a year, R4,680 in PAYE is paid on an allowance meant to cover a work tool. If the employer provided a company laptop instead, all R1,500-equivalent value would be delivered without tax. Use our PAYE Calculator to estimate the impact at your specific income level.
If your employer has confirmed in writing that you are required to work from home, and you have a dedicated home office space, you may qualify for a home office deduction on your annual return. This can include a portion of equipment costs such as computers and peripherals. The deduction is calculated as the proportion of your home used exclusively for work. Section 23(m) still applies — salaried employees face restrictions, and commission earners (50%+ rule) have broader rights. Consult a registered tax practitioner before claiming.
Frequently Asked Questions
What does code 3711 mean on my payslip?
Code 3711 is a computer allowance — an amount paid to you to cover the cost of using your personal computer or laptop for work. It is fully taxable income with no SARS prescribed exempt rate. PAYE is deducted at your marginal rate each month, and the gross amount appears on your IRP5 as part of your total remuneration.
Is a computer allowance taxable in South Africa?
Yes — fully taxable. There is no prescribed tax-free rate for computer allowances, unlike travel (R4.95/km) or subsistence (R452/day) which have exempt amounts. The full code 3711 allowance is subject to PAYE at your marginal rate. A company-provided laptop for business use is not taxable — the cash allowance alternative always costs more in tax.
Is a company laptop a taxable fringe benefit?
No — an employer-provided computer used primarily for business purposes is not a taxable fringe benefit under SARS rules. Business assets provided by the employer and used for business are specifically excluded from fringe benefit taxation. This makes a company-provided laptop significantly more tax-efficient than a code 3711 cash allowance.
Can I claim my computer costs as a deduction on my tax return?
Salaried employees face significant restrictions under Section 23(m). Most equipment costs are not deductible for regular employees. If you are required to work from home (confirmed in writing by your employer) and have a dedicated home office, equipment costs may form part of a home office deduction. Commission earners (more than 50% of income from code 3606) have broader rights. Consult a registered tax practitioner for advice specific to your situation.
Does code 3711 appear on my IRP5?
Yes. The total computer allowance paid during the tax year appears as code 3711 on your IRP5 and is included in your gross remuneration. PAYE was deducted monthly on the full amount. If you are claiming any home office or equipment deduction on your annual return, this is reflected in the deductions section of your ITR12.
What is more tax-efficient — a code 3711 allowance or a company laptop?
A company-provided laptop is always more tax-efficient. It delivers the full value of the equipment without any PAYE cost. A code 3711 cash allowance is taxed at your marginal rate — at 31%, R1,500/month becomes only R1,035 in hand. Where possible, negotiate for a company-owned device rather than a taxable monthly cash allowance.