Great Future · money
Overtime pay and tax
Separate an overtime entitlement estimate from its payroll tax treatment.
Reviewed 21 September 2026Direct answer
Overtime entitlement depends on the BCEA, applicable earnings threshold, contract and sector rules. Overtime pay is remuneration and can affect PAYE withholding, but a higher payslip deduction does not mean every overtime rand is taxed at one permanent rate.
Open Overtime Pay CalculatorWorked example
Model ordinary hours, overtime hours and the applicable multiplier first. Treat the gross overtime value as a separate payroll input, then use the salary calculator to estimate the combined payslip effect.
Limits to check
The calculator cannot decide whether the BCEA applies to a particular worker or replace a contract, bargaining-council rule or payroll result.
Official and primary sources
Related guidance
Keep exploring