Make employment in South Africa easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in South Africa, all in one easy-to-use platform.
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.
Capital
Official language
Currency
Population
Cost of living index
GDP real growth rate
Payroll frequency
VAT rate
Ease of doing business
Want to employ workers in South Africa? Companies hiring in South Africa are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in South Africa and keep you compliant. Remote can hire, onboard, and pay your South Africa team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in South Africa. Sign up now to get started or talk to an expert for more details.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in South Africa. Note that your employees may be liable for additional local taxes.
Employer
0%
Skills Development Levy (SDL)
0%
Unemployment Insurance Fund (UIF)
Employee
0%
Unemployment Insurance Fund (UIF)
0%
Up to 205,900
0 + 26%
of taxable income above 205,900 - 205,901 - 321,600
0 + 31%
of taxable income above 321,600 - 321,601 - 445,100
0 + 36%
of taxable income above 445,100 - 445,101 - 584,200
0 + 39%
of taxable income above 584,200 - 584,201 - 744,800
0 + 41%
of taxable income above 744,800 - 744,801 - 1,577,300
0 + 45%
of taxable income above 1,577,300 - Above 1,577,301
At Remote, we provide tailored benefits to ensure that all Remote employees receive comprehensive coverage from top providers.
Offering medical aid in South Africa is not mandatory, however, providing these plans can greatly enhance the healthcare experience for employees and ensure access to necessary medical services. In South Africa, Remote provides a variety of local healthcare plans, tailored to different needs. The primary distinction among these options pertains to their Day-to-Day coverage. Employees can utilize the allocated funds in their Medical Savings Accounts (MSA) for most outpatient treatments. However, when their MSA funds are depleted, they would require an extended benefit to maintain access to Day-to-Day coverage. The Smart and Delta Saver plans, offer comprehensive coverage options with specific network restrictions to accommodate different needs and preferences. The Saver plan offers basic coverage with no extension once MSA funds are depleted. The Priority plan provides a limited extension of Day-to-Day coverage once the MSA’s annual threshold is reached. The Comprehensive plan offers an unlimited extension of Day-to-Day coverage after reaching the MSA’s annual threshold, ensuring continuous access to outpatient treatments. If you would like more insight into fair equity and benefits best practices, you can download our Global Benefits Guide
here
!
Unlimited cover: Restricted to the Smart Network only.
Remote care at home, including:
Home Monitoring Device Benefit
Home-based hospital-related care and follow-up treatment
Hospital at Home programme for quality care at home
Covers chronic medicine on the formulary for 27 chronic conditions when using MedXpress or a MedXpress Network Pharmacy.
Covers vital tests to detect early warning signs of serious illness.
Guaranteed full cover in hospital for specialists with payment arrangements, up to 200% of the Discovery Health Rate (DHR) within the Smart Network.
Comprehensive benefits for maternity and early childhood, covering certain healthcare services before and after birth.
Covers a comprehensive list of additional screening and prevention healthcare services based on individual health needs.
Medical emergency cover when traveling.
Limited to General Practitioner consultations only.
Sports injury benefit for additional outpatient needs.
Unlimited cover: Restricted to the Delta Network only.
Remote care at home, including:
Home Monitoring Device Benefit
Home-based hospital-related care and follow-up treatment
Hospital at Home programme for quality care at home
Covers chronic medicine on the formulary for 27 chronic conditions when using MedXpress or a MedXpress Network Pharmacy.
Covers vital tests to detect early warning signs of serious illness.
Guaranteed full cover in hospital for specialists with payment arrangements, up to 200% of the Discovery Health Rate (DHR) within the Delta Network.
Comprehensive benefits for maternity and early childhood, covering certain healthcare services before and after birth.
Covers a comprehensive list of additional screening and prevention healthcare services based on individual health needs.
Medical emergency cover when traveling.
Limited day-to-day cover with an annual limit up to R8,688.
No additional outpatient coverage.
Unlimited cover: All hospitals with no overall limit.
Remote care at home, including:
Home Monitoring Device Benefit
Home-based hospital-related care and follow-up treatment
Hospital at Home programme for quality care at home
Covers chronic medicine on the formulary for 27 chronic conditions when using MedXpress or a MedXpress Network Pharmacy.
Covers vital tests to detect early warning signs of serious illness.
Full cover in hospital for specialists with payment arrangements, up to 200% of the Discovery Health Rate (DHR).
Comprehensive benefits for maternity and early childhood, covering certain healthcare services before and after birth.
Covers a comprehensive list of additional screening and prevention healthcare services based on individual health needs.
Medical emergency cover when traveling.
Medical expenses managed through Medical Savings Account (MSA).
Limited day-to-day cover with an annual limit up to R10,872.
No additional outpatient coverage.
Unlimited cover: No overall limit for hospital cover in all hospitals.
Remote care at home, including:
Home Monitoring Device Benefit
Home-based hospital-related care and follow-up treatment
Hospital at Home programme for quality care at home
Covers chronic medicine on the formulary for 27 chronic conditions when using MedXpress or a MedXpress Network Pharmacy.
Covers vital tests to detect early warning signs of serious illness.
Full cover in hospital for specialists with payment arrangements, up to 200% of the Discovery Health Rate (DHR).
Comprehensive benefits for maternity and early childhood, covering certain healthcare services before and after birth.
Covers a comprehensive list of additional screening and prevention healthcare services based on individual health needs.
Medical emergency cover when traveling.
Medical expenses managed through Medical Savings Account (MSA), allowing members to control their day-to-day spending.
Day-to-day Extender Benefit (DEB) extends cover for essential healthcare services in the network.
Limited Above Threshold Benefit (ATB) provides additional day-to-day cover once the Annual Threshold is reached.
Annual day-to-day limit up to R17,376.
Additional outpatient coverage up to R9,370.
Unlimited cover: All hospitals with no overall limit.
Remote care at home, including:
Home Monitoring Device Benefit
Home-based hospital-related care and follow-up treatment
Hospital at Home programme for quality care at home
Full cover for chronic medicine on the formulary for all 62 Chronic Disease List (CDL) conditions when using MedXpress or a MedXpress Network Pharmacy.
Covers vital tests to detect early warning signs of serious illness.
Full cover in hospital for specialists with payment arrangements, up to 200% of the Discovery Health Rate (DHR).
Comprehensive benefits for maternity and early childhood, covering certain healthcare services before and after birth.
Covers a comprehensive list of additional screening and prevention healthcare services based on individual health needs.
Medical emergency cover when traveling.
Medical expenses managed through Medical Savings Account (MSA).
Day-to-day Extender Benefit (DEB) extends cover for essential healthcare services in the network.
Extensive day-to-day cover with an annual limit up to R27,876.
Additional outpatient cover up to R35,000.
Remote offers a mandatory Provident Fund in South Africa as part of its Basic Benefits package to ensure compliance with local retirement savings practices. This Provident Fund applies to all employees.
Employer Contribution: 5% of base salary.
Employee Contribution: 5% of base salary, with the option to increase the contribution up to 27.5% voluntarily.
The contribution rates are fixed, with no flexibility for employer contributions beyond 5%.
Provident Fund: The fund serves as a retirement savings plan for employees, providing long-term financial security.
No Opt-Out: Employees cannot opt out of this mandatory benefit.
Waiver of Premium: In the event of long-term illness or disability, premiums are waived to ensure continuous pension accumulation.
Pension Transfer: Employees can transfer their existing funds to another pension provider upon leaving Remote.
Disability Coverage: The plan includes disability coverage, ensuring income protection if an employee is unable to work due to illness or injury.
Survivor’s Pension: Ensures financial security for the employee’s family in case of death.
Remote’s Global Business Travel Insurance program is crafted to address the unique needs of your team, whether they are embarking on short business trips or traveling extensively throughout the year. With five comprehensive plan options—Basic, Standard, Premium, Premium Plus, and Standard Plus—this program ensures that your team members have the right level of coverage to protect their health, safety, and well-being while traveling for business.
Available in over 90 countries, the program provides extensive global coverage at competitive rates, offering peace of mind no matter where their work takes them. This optional benefit is designed to be flexible, allowing you to offer tailored coverage that meets the diverse needs of your workforce. By providing business travel insurance, you are taking proactive steps to safeguard your team from unforeseen events such as medical emergencies, trip disruptions, or loss of business equipment while they are on the road.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Excludes Medical & Evacuation
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Emergency & Accidental Medical: $1,000,000
Repatriation for Medical Treatment: 100% per trip
Emergency Medical Evacuation: $100,000
Repatriation of Mortal Remains: $25,000 per trip
Pre-existing Medical Conditions: For stable pre-existing medical conditions up to $50,000
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Coverages (values in USD):
Excludes Medical & Evacuation
Baggage Delay: $100 per day up to $700 per trip *Does not apply to one-way trips
Personal Liability: $100,000 per trip
Accidental Death & Permanent Total Disability: $100,000 per trip
Loss of Passport: $250 per trip
Legal Expenses: $10,000 per trip
Hijacking: $1,000 per trip
Cancellation & Curtailment: $2,000 per trip; subject to $100 deductible per Trip *Benefit not available to residents of the USA
Business Equipment: Up to $1,500
Computer Equipment (single item limit): $500
Business Money: $100 per day up to $500
Domestic Business Travel: Trips inside country of residence: Any trip over 70 miles from usual residence, where there’s at least 1 overnight stay in paid accommodation. In-country trips exclude medical treatment & evacuation benefits.
Offering mental health benefits is not mandatory in this country, but providing the benefit can significantly enhance the emotional well-being and overall productivity of employees. Remote offers a comprehensive employee mental wellbeing platform in partnership with one of the top-rated employee mental wellbeing providers. This platform is available on desktop and mobile apps and includes 1-to-1 therapy with a curated pool of top-quality therapists in over 35 languages. The advanced matching service finds each employee the right therapist within 48 hours, boasting a 98% success rate. Employees receive a personal wellbeing profile with tailored recommendations and information to track progress. The platform also offers a curated self-guided content library with audio mindfulness and meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers. Additionally, there are 24/7 mental health helplines for immediate support when an employee is struggling. Mental health program benefits may be offered to the employees from among 5 different plans. Offering mental health benefits is optional, but it can greatly enhance employee well-being and productivity. It is essential to be aware that in certain countries, mental health benefits may be categorized as ‘Benefits in Kind’ (BIK). This categorization means that the monthly premiums paid for the benefit might be counted as part of the employee’s taxable income according to the local tax laws. When mental health benefits are offered, they must be provided equally to all employees in the respective country.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Not included in the Basic plan
Team members can pay for therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes one pre-paid Therapy/Coaching session per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes three pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes six pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Access to the wellbeing platform and app, which includes:
Personalized wellbeing assessment
Access to world-class self-guided content library with audio mindfulness & meditation sessions, guided yoga videos, talks, podcasts on workplace wellbeing, and micro-learning content series for managers
Access to manager-specific learnings and resources
Precision matching for 1:1 coaching and therapy in 35+ languages
Professional coaching
Text-based chat with dedicated practitioner
24/7 global support in all languages
Add up to 3 friends and family to the platform
Includes twelve pre-paid Therapy/Coaching sessions per policy year
Team members can pay for extra therapy sessions themselves, if needed.
Clients can choose to offer the Wellness & Lifestyle Benefit and select from multiple contribution levels, providing their team members a monthly wallet, which they can use with their virtual card at approved stores, online retailers, or any other approved vendors related to Lifestyle and Wellness benefits. The offered services include:
Physical and mental health support such as gym memberships, fitness classes, therapy, mindfulness apps, and guided meditation.
Lifestyle services like streaming subscriptions (Spotify, Netflix), groceries, and other services that support work-life balance and personal well-being.
Personalized recommendations to help employees select benefits most relevant to their needs.
Platform support for employees needing immediate assistance or guidance on wellness-related concerns.
The available contributions are:
$25 USD
$50 USD
$100 USD
$150 USD
$200 USD
$250 USD
$300 USD
South Africa has a growing economy with key industries in mining, finance, and manufacturing. With specific labor laws and tax regulations, employers in South Africa must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.
Employers in South Africa must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:
Minimum wage: South Africa’s minimum wage is ZAR 25.42 per hour.
Payroll frequency: Salaries are generally paid monthly.
Standard working hours: The normal workweek in South Africa is 45 hours, typically spread over five or six days.
Overtime: Employees are entitled to additional pay for overtime work, calculated at 150% of the regular wage for extra hours and 200% for work on public holidays.
Personal income tax: South Africa has a progressive income tax system with rates ranging from 18% to 45% depending on income levels.
Employer contributions:
Employee contributions:
Corporate tax : The corporate income tax rate in South Africa is 27%.
Tax reporting: Employers must file payroll taxes and contributions with the South African Revenue Service (SARS) regularly.
Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
Payroll deductions: Employers must ensure accurate deductions for UIF, SDL, and income tax.
Employers must stay updated on changes to South Africa’s labor laws and tax regulations to avoid penalties.
Managing payroll in South Africa requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.
Hiring contractors in South Africa can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for various projects, understanding South Africa’s labor laws and federal regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support: Ensures adherence to labor laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection: Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation: Maintains essential records for audits and automates tax filings.
Legal expertise: Provides guidance on complex local labor laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Automated processing: One-click approvals, bulk payments, recurring invoices, and real-time tracking.
Global coverage: Payments in 200+ countries, multiple payment methods, and currency flexibility.
Cost and compliance: Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in South Africa — get started for free today.
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in South Africa with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in South Africa without having to set up a local legal entity. On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities.
An EOR may be ideal if your company:
Needs to hire employees in South Africa but doesn’t want to establish a legal entity
Is testing local markets before committing to a full business expansion
Wants to ensure full compliance with local employment laws and tax requirements
Needs a fast, cost-effective way to onboard employees in South Africa
Needs a temporary hiring solution before establishing a legal entity
If your company wants to hire talent in South Africa but doesn't have a legal entity there, our EOR provides a fully compliant and efficient solution. South Africa has strict employment and payroll tax laws, and our EOR service ensures you meet these legal obligations while enabling you to grow quickly.
Key benefits of hiring through our EOR in South Africa include:
Faster market entry. You can hire talent quickly, without having to wait months to establish a local entity.
Full compliance with local employment laws. Avoid the legal risks associated with non-compliance and misclassification.
Simplified payroll management. We automate payroll tax calculations and ensure you are fully compliant with all withholding obligations, even when laws change.
Lower costs. Setting up a legal entity in South Africa can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.
Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.
It’s also crucial to note that, at Remote, we own our own legal entity in South Africa. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.
To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.
£559
per employee/month
Employ people in more than 90 countries without setting up a local legal entity
Onboarding overseen by a dedicated specialist
Local payroll paid promptly, every time
Built-in compliance protections
Competitive and flexible benefits, localised for each market
Dedicated in-house experts providing local support
HR Essentials included as standard
£23
per employee/month
A powerful, transparent solution for global payroll
An easy-to-use self-service platform
Dedicated specialists providing personalised support
Ensure compliance with local payroll regulations in each country
Centralised management of employee benefits
HR Core included as standard
£23
per contractor/month
Pay only for contractors you are actively collaborating with
Engage contractors based overseas
Draft, revise and sign bespoke, localised contracts
Authorise contractor invoices with a single click or set to auto-pay
Payments presented transparently with full visibility
HR Core included as standard
