What Is a PAYE Number in South Africa?

4 Nov 2025
If you’re hiring staff and paying salaries above the tax threshold, you’ll need to register for PAYE (Pay-As-You-Earn) - and that means getting a PAYE reference number from SARS.


💼 What Is a PAYE Number in South Africa?

If you’re hiring staff and paying salaries above the tax threshold, you’ll need to register for PAYE (Pay-As-You-Earn) — and that means getting a PAYE reference number from SARS.

🔢 What is a PAYE number?

A PAYE number is a 10-digit identifier that always starts with a 7, issued by SARS when your business registers for PAYE. It’s used to:

  • Deduct and declare employee income tax
  • Submit monthly EMP201 returns
  • Stay in good standing with SARS

Without it, you can’t legally deduct tax from salaries - and SARS may hold you liable for unpaid tax.

📝 When do you need a PAYE number?

You must register for PAYE if:

  • You have one or more employees
  • Any employee earns above ±R7,900/month (±R95,000/year)
  • You pay regular monthly salaries, not just once-off payments

Even one taxable employee triggers the requirement.

🧾 How do you get a PAYE number?

To register:

  1. Complete the EMP101e form via SARS eFiling
  2. SARS will issue your PAYE number once approved

You’ll usually register for UIF and SDL at the same time.

🛠️ How openHR supports PAYE compliance

openHR’s free payroll software is designed to simplify PAYE rituals:

  • Auto-calculates PAYE, UIF, and SDL
  • Generates EMP201 and EMP501 summaries
  • Flags missing registration details with diagnostic clarity

We don’t just automate payroll - we reverse-engineer the rituals that frustrate small businesses and turn them into legacy moves.

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