Commissions are payments received based on a sale.

Some employees earn commission in addition to their base income, while other employees work only on commission.

When an employee earns a commission, they make a portion of the sale on income.

Commission earnings are taxed at the same rate as basic earnings, according to the standard PAYE Monthly Tax Deduction Tables from the South African Revenue Service (SARS).

There will, however, be a different code on the IRP5 Tax Certificate just to let SARS know the nature of income received by an employee.

Commission earnings are captured and disclosed under taxable earnings on our payslip template and are subject to normal tax under the SARS Monthly PAYE Tax Deduction Tables.