Start with what the offer actually includes
A cost-to-company offer may include employer retirement and medical contributions. That package is different from the cash salary paid before deductions. Request a breakdown before comparing two jobs.
Make a list of recurring cash earnings, a separately identified bonus, and benefits that might affect taxable income. A bonus is not automatically taxed at a separate flat rate.
Subtract tax and your own cash deductions
Estimate PAYE first. Then account for employee UIF, retirement contributions, your medical scheme payment and any other payroll deductions. A tax deduction reduces the income used to calculate tax; it does not repay the entire expense.
Our tool assumes a full year of regular pay and spreads annual figures into average periods. The month a bonus is paid can look very different from that average.
Compare the budget, not just the headline
Compare commuting costs, insurance, retirement provision and the reliability of variable pay. A higher headline package may leave less cash for your monthly needs.
After estimating take-home pay, build a budget using expenses you can document. Keep a buffer for costs that do not happen every month.
Compare offers with a small cash-flow worksheet
Create a row for cash salary, employer-funded benefits, your own deductions, estimated tax and the resulting cash deposit. A R1 000 employer contribution and a R1 000 cash allowance may appear in different parts of the offer and may have different tax treatment. Ask for the package breakdown before treating them as interchangeable.
Run each offer as a separate scenario with consistent assumptions. Include a bonus only once, and keep uncertain variable pay separate from the regular monthly amount. Save or download both scenarios with their dates so you can see exactly which assumptions produced the comparison.
Check what the change means for your actual month
Suppose the cash arriving in your account would rise by R1 200, while extra travel and parking would cost R800 a month. The illustrative cash difference is R400 before any other changes. The size of the gross pay rise alone does not show that result.
Repeat the check for benefit costs, working arrangements and the timing of deductions. Separate recurring monthly changes from moving costs or once-off payments. This worksheet helps organise a decision; it does not decide whether a particular job or benefit is right for you.
Sources & further reading
Educational information, not personalised financial advice. This guide was prepared for this release. Read our editorial and corrections policy.