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AfriTaxCalc

R2,070.00 a month

Workings

Pension contribution calculator

See what a retirement fund contribution really costs you after the PAYE it saves, and how much more you can put in before you reach the tax-free limit.

2026/27 tax yearVerified against SARS · 11 June 2026

What it really costs you a month

R2,070.00

Your R3,000.00 contribution really costs you R2,070.00 a month: it cuts your PAYE by R930.00.

Tax saved a month
R930.00
Take-home before
R32,138.13
Take-home after
R30,068.13

An estimate: payroll systems round each month, so your payslip can differ by a few rand.

Your pay and contribution

Before anything is taken off.

To a pension, provident fund or retirement annuity.

Enter it as
Your age
People on your medical aid

Including you. 0 if none.

0

Your own contributions only; employer contributions aren't included. Nothing leaves your browser.

What people ask next

Workings

Gross salary a monthR40,000.00
Your contribution7.5% of gross payR3,000.00
Deductible part [2]27.5% of pay, at most R430,000 a yearR3,000.00
Take-home pay before [1]R32,138.13
PAYE saved [1]the salary calculator, with and without the contributionR930.00
Take-home pay afterR30,068.13
Real cost of the contributioncontribution less the PAYE savedR2,070.00

Uses SARS's 2026/27 tax tables and the retirement fund deduction of 27.5%, capped at R430,000 a year. Checked 11 June 2026; see the numbered sources. Estimates for guidance only, not tax or financial advice.

Why a contribution costs less than it looks

Contributions to a pension fund, provident fund or retirement annuity are deducted from your income before PAYE is worked out. So every rand you contribute lowers your tax by your marginal rate: at 31%, a R1,000 contribution saves R310 of PAYE and really costs R690.

The limits

For 2026/27 you can deduct up to 27.5% of the greater of your remuneration or taxable income, and no more than R430,000 a year, up from R350,000. Anything above the limit gets no relief this year but carries forward to later years and to retirement.

What this calculator leaves out

It takes your own contributions only. Employer contributions are taxed as a fringe benefit and then treated as yours for the deduction; the guide explains how.