South Africa
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
South Africa
Everything you need to know about payroll, benefits & hiring top talent in South Africa
Currency
South African Rand (ZAR)
Salary payment frequency
Bi-weekly or monthly
Capital
Pretoria, Cape Town and Bloemfontein
Time Zone
GMT +2:00
Official Languages
Sepedi, Sesotho, Setswana, siSwati, Tshivenda, Xitsonga, Afrikaans, English, isiNdebele, isiXhosa, isiZulu
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- South Africa, officially known as the Republic of South Africa, is the southernmost country in Africa
- It has been classified by the World Bank as a newly industrialised country, with the second-largest economy in Africa, and the 33rd-largest in the world
- South Africa is a developing country and ranks 113th on the Human Development Index, the seventh-highest in Africa
- It has the 35th largest economy by nominal GDP (2021) and 32nd by PPP (2020)
- South Africa ranks 114th on the HDI
Why Employ In South Africa?
- The main exports from South Africa include gold, diamonds and platinum
- Population demographic- 16.8 % of the population is between the ages of 15 and 24 years, with 42.37% of the population being between the ages of 25 and 54. South Africa has a mix of a fairly youthful population, making it a favourable country to employ young, energetic employees, as well as a good country to hire more experienced employees
Overview Of The Labour Law
- Employment law in South Africa is not contained under a single law and is founded on the Constitution and numerous other labour laws
- South African labour law is divided into two areas: collective labour law and individual labour law
- Collective labour law governs the relationship between employers and trade unions, disputes, wage agreements and strikes. Legislation related to this is all contained under the Labour Relations Act 66 of 1996. Individual labour law relates to the law that governs the minimum terms and conditions of employment, regulation of terminations and disputes concerning unfair dismissal, labour practices, and discrimination claims. These provisions are found in the Basic Conditions of Employment Act 75 of 1997
- The labour laws in South Africa are generally weighted towards the employee
Fun Country Facts
- South African fish migration is so huge you can see it from space
- The world’s first heart transplant was completed in Cape Town, South Africa
- The oldest remains of modern humans were found in South Africa
Why Use Playroll Services For South Africa?
- Employing in the South Africa requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in the South Africa
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your business
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Unemployment Insurance Fund
Calculated on a maximum salary of R 17 712.00
1.00%
Calculated on monthly earnings
Skills Development Levy
1.00%
Calculated on monthly earnings
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Unemployment Insurance Fund
Calculated on a maximum salary of R 17 712.00
1.00%
Calculated on monthly earning
Income Tax
Income Tax is ‘Pay As You Earn’
Income bracket per annum
0 – 216,200.00
18.00%
216,201.00 – 337,800
38,916.00 + 26% of taxable income above 216,200.00
337,801.00 – 467,500.00
70,532.00 + 31% of taxable income above 337,800.00
467,501.00 – 613,600.00
110,739.00 + 36% of taxable income above 467,500.00
613,601.00 – 782,200.00
163,335.00 + 39% of taxable income above 613,600.00
782,201.00 – 1,656,600.00
229,089.00 + 41% of taxable income above 782,200.00
1,656,601.00 or more
587,593.00 + 45% of taxable income above 1,656,600.00
Employment Terms
General
Minimum Wage
- R 21.69 per hour
Working Hours
- Maximum of 45 hours per week
- Minimum 30 minute meal interval, maximum 60 minutes
- Typical working hours are 08h00 to 17h00 Monday to Friday
Overtime
- Maximum of 3 hours per day and 10 hours per week
- Remuneration must be at 1,5 times the normal wage rate and double the normal wage rate for work on Sundays and public holidays
- Overtime pay is only applicable to employees who earn below the threshold (R211,596 per year/ R17,633 per month)
Notice Period
- Employed between 0 and 6 months- 1 weeks’ notice
- Employed between 6 and 12 months- 2 weeks’ notice
- Employed for 12 or more months- 4 weeks’ notice
Severance Pay
- 1 weeks’ pay for every year of employment
Probation Period
- There is no statutory probationary period
- It is common to have a probation period of 3 months
Bonus
- There is no statutory bonus
Public Holidays
Public holidays 2023
- January 1st – New Year
- March 21st – Human Rights Day
- April 7th – Good Friday
- April 10th – Family Day
- April 27th – Freedom Day
- May 1st – Workers’ Day
- June 16th – Youth Day
- August 9th – National Women’s Day
- September 24th – Heritage Day
- September 24th – Heritage Day (observed)
- December 16th – Day of Reconciliation
- December 25th – Christmas Day
- December 26th – Day of Goodwill
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Minimum 15 days per year
Sick Leave
- Paid leave
- Paid by employer
- 10 days per year- 5 day work week
- 6 days per year- 6 day work week
- Sick leave runs on a 36 month cycle
Maternity Leave
- Unpaid leave
- 16 weeks per year
Parental Leave
- Unpaid leave
- 10 days per year
- Parental leave includes paternity and adoption leave
Study Leave
- There is no statutory obligation to provide study leave
- It is common to give a minimum of 2 days leave per year and a maximum of 10 days leave per year
- Usually paid by employer
Family Responsibility Leave
- Paid leave
- Paid by employer
- 3 days per year
Start hiring in South Africa today!