A Beginner's Guide to Understanding Your Payslip
Quick Summary
- Gross Pay: Your total salary before any deductions.
- Net Pay: Your "take-home" pay after all deductions have been subtracted.
- Statutory Deductions: These are required by law (PAYE, NSSA, AIDS Levy).
- Voluntary Deductions: These are optional (e.g., medical aid, funeral policy, loan repayments).
- PAYE: The income tax you pay to ZIMRA.
A payslip can be confusing, with many different terms and figures. This guide breaks down the most common components of a Zimbabwean payslip to help you understand where your money is going.
Want to estimate your take-home pay? Use our simple salary calculator.
Go to PAYE Estimator →Key Terms on Your Payslip
- Basic Salary: Your fixed monthly salary before any allowances (like transport or housing) are added.
- Allowances: Additional payments for specific purposes, such as transport, housing, or mobile phone usage.
- Gross Pay: This is your Basic Salary plus all your allowances. It's your total earnings before anything is deducted.
- Deductions: The money that is subtracted from your Gross Pay. These are split into two types.
- Net Pay: This is your final "take-home" amount after all deductions. The formula is: **Gross Pay - Total Deductions = Net Pay**.
Statutory Deductions (Mandatory)
These are deductions required by law. Your employer must subtract these from your salary and remit them to the relevant authorities.
- PAYE (Pay As You Earn): This is the income tax paid to the Zimbabwe Revenue Authority (ZIMRA). The amount you pay depends on how much you earn and is calculated based on official tax bands. Higher earners pay a higher percentage.
- NSSA (National Social Security Authority): This is your contribution to the national pension fund. A small percentage is deducted from your salary, and your employer also contributes on your behalf.
- AIDS Levy: A small percentage of your income that is contributed to the National AIDS Council to fund HIV/AIDS programs.
Voluntary Deductions (Optional)
These are deductions you have agreed to, often for benefits or personal financial arrangements.
- Medical Aid: Your contribution towards a medical insurance scheme.
- Funeral Policy: Contributions towards a funeral assurance policy.
- Pension Fund: Contributions to a private company pension fund, separate from NSSA.
- Loan Repayments: If you have a loan from the company or a staff savings scheme (SACCO).
Why It's Important to Check Your Payslip
- Ensure Accuracy: Check that your salary and allowances are correct.
- Verify Deductions: Make sure that statutory deductions like NSSA and PAYE are being remitted. This is crucial for your future pension and tax compliance.
- Track Your Finances: Understanding your net pay helps you budget effectively.