Do I have to deduct PAYE tax for my domestic worker?
Short answer
In most households the answer is no — a domestic employer is generally not required to register as a PAYE employer or deduct employees' tax for a domestic worker, because typical domestic wages fall below the income-tax threshold and SARS does not treat the ordinary householder as a PAYE-registered employer. You do still handle UIF (1% + 1%), which is separate from income tax. If a worker's total income is above the tax threshold, they remain responsible for their own tax affairs with SARS. This is guidance, not tax advice — confirm your position with SARS or a tax practitioner.
PAYE vs UIF — two different things
It's easy to confuse the two. UIF is unemployment insurance — 1% deducted from the worker and 1% added by you, declared monthly — and it applies to domestic workers over 24 hours a month. PAYE (employees' tax) is the advance collection of income tax, which an employer withholds and pays to SARS. They are separate obligations: doing UIF does not mean you must do PAYE.
Why most households don't deduct PAYE
A typical domestic wage is below the annual income-tax threshold, so no income tax would be due in any case. SARS generally does not require an ordinary private household to register as a PAYE employer for a domestic worker, and the practical position for most households is that PAYE simply doesn't arise. You handle UIF and keep proper payslips; you don't run a PAYE payroll.
When tax could come into play
If a worker earns above the income-tax threshold (for example a high-paid live-in housekeeper, or a worker who has multiple jobs that together exceed the threshold), income tax may become relevant. In that case the worker is generally responsible for their own SARS affairs — registering and submitting a return — rather than the householder running PAYE. Because thresholds change each tax year, we don't quote a figure here: check the current threshold on the SARS website.
Keep clean records either way
Whatever your tax position, issue a proper payslip every payday and keep records. Clear payslips make the worker's own tax position straightforward if it ever arises, support their UIF claims, and are your evidence of compliance. If you're unsure whether you need to register for PAYE, ask SARS or a registered tax practitioner — this is a compliance tool, not tax advice.
Frequently asked questions
Do I pay PAYE for a domestic worker?
Usually no. Typical domestic wages fall below the income-tax threshold and households are generally not required to register as PAYE employers. You still handle UIF, which is separate. Confirm with SARS if unsure.
Is UIF the same as tax?
No. UIF is unemployment insurance (1% + 1%); PAYE is income tax withheld for SARS. They are separate obligations — doing UIF does not mean you must run PAYE.
What if my worker earns above the tax threshold?
Then income tax may apply, but the worker is generally responsible for their own SARS affairs. Thresholds change yearly, so check the current figure on the SARS website.
Should I get advice?
Yes if you're unsure — ask SARS or a registered tax practitioner. This is a compliance tool, not tax advice.
Dignita is a compliance tool, not legal advice. Figures are based on current South African legislation; confirm with a labour-law professional for your situation.