An employee is entitled to written details of what they were paid and what was taken off it, every time they are paid. It is not optional, it is not satisfied by a bank transfer reference, and it is one of the first things asked for when anything goes wrong.
What has to be on it
At minimum, a payslip should identify the employer and the employee, the period it covers and the date of payment, and then set out clearly:
- The rate of pay and the hours or period worked.
- Gross pay, and any overtime, allowances or additional amounts shown separately.
- Every deduction, itemised — not a single net figure.
- The net amount actually paid.
"Itemised" is the operative word. A payslip showing gross, "deductions", and net tells the employee nothing and satisfies nobody.
Deductions you may and may not make
Statutory deductions — employees' tax, UIF, and anything a bargaining council or the law requires — come off as a matter of course.
Everything else needs a basis. Generally, a deduction requires the employee's written agreement, and there are limits on deducting for loss or damage: broadly, it has to be after a fair process, the employee must have been at fault, and there are caps on how much of a wage may be taken.
Deducting for a till shortfall, breakage or a company loan without written agreement and a proper process is one of the more common ways a small employer ends up at the CCMA. Get the agreement in writing before the deduction, not after.
Give it every time, and keep a copy
Handing over payslips only when somebody asks defeats the purpose. Issue one with every payment — email is fine — and keep your own copy.
Employees need them constantly for things that have nothing to do with you: rental applications, finance, home loans, visa applications. An employer who produces them promptly is doing something that matters more to staff than most benefits.
The tax certificate
Separately from monthly payslips, employees receive a tax certificate summarising the year's earnings and deductions, which they need to file their own returns. It comes out of your payroll submissions, which is another reason to keep those current — an employee who cannot file because their employer's submissions are behind will not be understanding about it.
The habit
Payslip out on payday, filed the same minute, in the same place every month. Two minutes with software, and it is the single cheapest piece of protection an employer has: nearly every wage dispute turns on what was agreed and what was actually paid, and the payslip is the answer to both.
General guidance, not legal advice. Requirements around deductions and pay records are set by legislation and sometimes by sectoral determinations; confirm what applies to your sector.