Is PAYE deducted on a basic wage or on a wage including provident contributions from the employer ?

By Marc Sevitz · Updated

Idiot

Idiot said:
15 October 2015 at 15:14

I need a wage structure where the employer contributes 8% to a provident fund and the employee contributes 7. 5% to the same provident fund. How and when is PAYE deducted? Do you add the 8% to the basic wage and then deduct PAYE?
TaxTim Marc

TaxTim Marc said:
15 October 2015 at 18:29

The employer contribution to a provident fund is not taxable in the hands of the employee so you can ignore that for PAYE purposes.
Idiot

Idiot said:
16 October 2015 at 8:56

Very helpful.Thank you.
TaxTim Marc

TaxTim Marc said:
16 October 2015 at 18:56

Only a pleasure!