Contract of employment

A contract of employment is the agreement between yourself and your employer about the terms and conditions of your employment. A contract of employment states, for example:

• Your gross salary, which is the salary before any deductions are made
• Deductions for pension, medical aid and the unemployment fund
• Work hours
• How much paid leave you will get per year
• Maternity leave and sick leave
• Whether you will get an annual bonus in the form of a 13th cheque and what time of the year this bonus will be paid
• Travel allowance, if you have to travel a lot for your job
• Your duties and responsibilities and
• Action that your employer will take if you do not perform (also called disciplinary action).

The total earnings reflected on your payslip will be your gross salary. The amount that is paid out after deductions have been made is your net salary.