Sage offers South African employers two very different ways to run payroll, and the names do not make the choice obvious. Sage Pastel Payroll is established desktop software with a licence you buy by headcount. Sage Business Cloud Payroll is a browser based product billed monthly. Both keep you compliant with SARS, and both are backed by Sage's local presence, but they suit different kinds of employer. This comparison lays out the real differences so you can choose with confidence.
The core difference
As with Sage's accounting products, the fundamental split is desktop versus cloud. Sage Pastel Payroll installs on a machine in your office and has been a fixture in South African back offices for decades. Sage Business Cloud Payroll runs in your browser, updates its legislation automatically, and is aimed at employers who want payroll done without worrying about year end software updates. Everything else flows from that difference.
Pricing: two different models
The two products are priced in completely different ways, and this often decides the matter. Sage Pastel Payroll is sold as an annual licence priced by the number of employees. Sage Business Cloud Payroll is a monthly subscription, also priced by headcount, but with unlimited companies and unlimited users included at every tier.
| Employees | Sage Pastel Payroll (per year) | Sage Business Cloud Payroll (per month, incl VAT) |
|---|---|---|
| 2 | Sold from the 10 employee tier | R90 |
| 10 | R4,476 | R401 |
| 20 to 25 | R10,656 (20) | R951 (25) |
| 50 | R16,560 | R1,712 |
| 100 | R23,844 | R3,014 |
| 150 to 200 | R30,600 (150) | R4,182 (200) |
Compare the annual figures fairly. Sage Pastel Payroll for 10 employees costs R4,476 a year, which works out to under R400 a month. Sage Business Cloud Payroll for 10 employees costs R401 a month, or roughly R4,812 a year. At small headcounts the two land close together, but the cloud product includes unlimited companies and users, which matters a great deal for the audience that runs payroll for more than one business.
Why the cloud product suits bookkeepers and accountants
That unlimited companies point deserves emphasis. If you are a bookkeeper or accountant running payroll for several clients, Sage Business Cloud Payroll lets you handle all of them from one login at a single per employee cost, with no separate licence per company. For a practice, this is often the deciding factor. One subscription, many client payrolls, legislation that updates itself in the background.
SARS compliance: both deliver
Whichever you choose, the statutory work is covered, because Sage keeps both products aligned with South African payroll legislation. Both handle PAYE, UIF and SDL calculations, produce the monthly EMP201 figures, support EMP501 reconciliations and IRP5 certificates, and cater for the Employment Tax Incentive. The difference is in how updates reach you. Sage Business Cloud Payroll receives legislative changes automatically in the cloud, so your calculations are always current. Sage Pastel Payroll relies on statutory updates that you apply to the desktop software, which the local support network helps with. For deeper detail on the compliance side, see our guide to Sage payroll and SARS.
Where Sage Pastel Payroll pulls ahead
Pastel Payroll is the more powerful and established of the two, and larger or more complex employers often prefer it. It caters for up to 500 employees on a single licence, supports multiple pay frequencies, handles more intricate payroll scenarios, and integrates with the Sage 50c Partner general ledger. For employers who already run Pastel accounting and want everything in the same desktop family, it is the natural companion, especially given the frequent promotion that gives 20% off Pastel Payroll when you buy a Sage 50cloud Pastel product. The desktop model also means the pay run keeps working during an internet outage.
Where Sage Business Cloud Payroll pulls ahead
The cloud product wins on simplicity, accessibility and low entry cost. Two employees cost just R90 a month including VAT, which makes it one of the most affordable ways for a startup to run compliant payroll. The pay run is a guided process that an owner without payroll training can complete. Payslips go out by email, UIF declarations are generated for the Department of Employment and Labour, leave is managed in the product, and ACB payment files come out ready for the bank. Because it is cloud based, you can run payroll from anywhere, and there is no year end software update to install. You can try a demo company free for 30 days without entering a card.
A simple way to decide
Use these guidelines to place your business.
Choose Sage Business Cloud Payroll if you are a startup or small business, you want low monthly costs, you value running payroll from anywhere, you run payroll for more than one company, or you want legislation to update itself without any effort on your part.
Choose Sage Pastel Payroll if you are an established employer with a larger or more complex workforce, you already run Pastel accounting, you want the depth and control of the desktop product, or you want the reassurance that the pay run continues during an internet outage.
Do not forget the integration picture
Payroll does not stand alone. Sage Business Cloud Payroll integrates directly with Sage Accounting for the general ledger, posting its journals into the books automatically, which makes it the obvious pairing if you run cloud accounting. Sage Pastel Payroll pairs with the Pastel accounting family. Whichever route you take, the value is in the two products talking to each other so that your payroll costs land in your accounts without rekeying.
The verdict
For most small and growing South African employers, and especially for bookkeepers running several client payrolls, Sage Business Cloud Payroll is the practical, affordable, low maintenance choice. For established employers with larger teams, more complex requirements or an existing Pastel setup, Sage Pastel Payroll remains the more capable desktop option. Both keep you on the right side of SARS, which is ultimately what payroll software is there to do.
See current pricing on our Sage Business Cloud Payroll page and Sage Pastel Payroll page, or browse the full payroll software category to compare against other South African options.
