The Taxberg
R 17,142
Net pay
R 349
Tax the employer pays
R 2,858
Tax you pay
Total tax paid
R 3,207
Did you know your employer also pays tax on your salary? It costs the employer R 349 to pay you R 20,000. In other words, every time you spend R 10 of your hard-earned money, R 1.60 goes to the government.
Real tax rate
So, with you and the employer both paying tax, what used to be a 14.3% tax rate now rises to 15.8%, meaning your real tax rate is actually 1.5% higher than what it seemed at first.