South Africa
Make employment in South Africa easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in , all in one easy-to-use platform.
- Capital city
Pretoria (executive), Bloemfontein (judicial), and Cape Town (legislative)
- Currency
South African Rand (R, ZAR)
- Languages
English and 10 other official languages
- Population size
59,622,350
Facts & Stats
- Capital city
Pretoria (executive), Bloemfontein (judicial), and Cape Town (legislative)
- Currency
South African Rand (R, ZAR)
- Languages
English and 10 other official languages
- Population size
59,622,350
- Ease of doing business
Easy
- Cost of living index
$$ (77 of 139 nations)
- Payroll frequency
Monthly
- VAT - standard rate
15%
- GDP - real growth rate
0.7871% (2018 est.)
South Africa, Republic of South Africa, is the southernmost country in Africa. With over 59 million people, it is the world's 24th-most populous nation. South Africa is a developing country and ranks 113th on the Human Development Index, the seventh-highest 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.
Grow your team in South Africa with Remote
Looking to employ workers in South Africa? Companies hiring in South Africa must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in South Africa on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your South Africa team. You can also pay contractors now in South Africa with Remote.
Risks of misclassification
South Africa, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in South Africa may lead to fines and penalties for the offending company.
Employing in South Africa
Employment law in South Africa is not contained under a single law and is informed by the Constitution of the Republic of South Africa, common law and specific labour legislation. In general, South African labour law is divided into two areas: collective labour law and individual employment law.
Collective labour law governs the relationship between employers and trade unions, disputes, wage agreements, strikes, lockouts, etc.. Legislation related to this is all contained under the Labour Relations Act 66 of 1996 (LRA). Individual employment law relates to the law that govern the minimum terms and conditions of employment, regulation of terminations and disputes concerning unfair dismissal, labour practices, and discrimination claims.
Minimum Wage
The minimum wage of R23,19 per hour will increase to R25,42 per hour (an increase of approximately 9,6%), with effect 1 March 2023. The new minimum also outlines the minimum wage for workers in certain sectors.
Farm workers will earn a minimum in line with the rate, as will domestic workers. However, workers employed in expanded public works programmes will be entitled to a lower rate at R13.97 per hour.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Onboarding Time
We can help you get a new employee started in South Africa fast. The minimum onboarding time we need is only 3 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
12 Public holidays
Competitive benefits package in South Africa
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in South Africa are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in South Africa
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in South Africa.
1%
Skills Development Levy (SDL)
1%
Unemployment Insurance Fund (UIF)
Types of Leave
All full-time workers are legally entitled to 21 consecutive days paid holiday leave a year. There are also 12 public holidays in South Africa that are not part of the holiday entitlement.
Employment termination
Termination process
South African employers can not terminate an employee at will. Under the South African Labour Relations Act, employees have the right to be 'fairly dismissed'.
Dismissals can happen for the following reasons:
Dismissal without notice for misconduct (for example in the case of theft or other serious misconduct);
Dismissal due to incapacity (for example due to health or poor performance), usually after opportunity to meet performance standards;
Dismissal due to operational requirements for the company; or
Termination by separation agreement, agreed upon by the employee and employer.
Notice period
The statutory notice period for an employer depends on the duration of employment:
Less than 6 months: 1 week
Between 6 months and 1 year: 2 weeks
More than 1 year: 4 weeks
Probation periods
Probationary periods are permitted and must be reasonable with regards to the length to determine whether the employee is suitable for the job. 3 to 6 months is fairly commonplace.