What is PAYE?
Pay As You Earn (PAYE) is income tax withheld by your employer each month. The annual tax brackets are applied progressively over the year, so your PAYE usually increases as your cumulative income passes each threshold.
2025/26 tax brackets
For the income year 1 July 2025 to 30 June 2026, the first Rs 500,000 of chargeable income is taxed at 0%, the next Rs 500,000 at 10%, and anything above Rs 1,000,000 at 20%. Deductions for dependents reduce your chargeable income.
CSG on your payslip
The Contribution Sociale Généralisée is deducted from your basic salary. The employee rate is 1.5% on the first Rs 50,000 per month and 3% on anything above. It replaced the National Pensions Fund contribution.
National Savings Fund (NSF)
Employees contribute 1% of basic salary to NSF, subject to a monthly ceiling. The employer also contributes separately. NSF appears as a small deduction on most payslips.
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Category: tax