Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Discover EOR in South Africa, where foreign employers can access valuable information and insights on hiring and managing employees in the country. Explore essential details on employment regulations, payroll obligations, social security contributions, work permits, employee benefits, termination procedures, and the role of South African labor authorities. Our comprehensive resources will assist you in understanding the intricacies of employment practices in South Africa and ensuring compliance with local legal requirements. Whether you are establishing a presence in the South African market or expanding your workforce, our EOR services will provide the support you need for a smooth and successful employment experience in South Africa.
| Overview | |
| Continent | Africas |
| Country | South Africa |
| Capital | Pretoria, Cape Town and Bloemfontein |
| Time zone | UTC+02:00 (South African Standard Time) — main territory of South Africa |
| Total Time zones | 2 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | The date for the filing of returns is fixed each year by government notice. |
| Financial Year | 1 March 2021 – 28 February 2022 |
| Date format | yyyy-mm-dd |
| Currency | South African Rand (ZAR) |
| VAT | the standard rate is 15% |
| Employers | % of Gross Salary |
| Unemployment Insurance Fund | 1% |
| Skills Development Levy (SDL) | 1% |
| Total Employment Cost | 2% |
| Employees | % of Gross Salary |
| Unemployment Insurance | 1% |
| Total Employee Cost | 1% |
| Minimum Wage | The minimum wage in South Africa is 21.69 ZAR per hour. |
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Paid at the end of the year. |
| Income Tax 2023 | |
| Taxable income (R) | Rates of tax (R) |
| 1 – 226 000 | 18% of taxable income |
| 226 001 – 353 100 | 40 680 + 26% of taxable income above 226 000 |
| 353 101 – 488 700 | 73 726 + 31% of taxable income above 353 100 |
| 488 701– 641 400 | 115 762 + 36% of taxable income above 488 700 |
| 641 401 – 817 600 | 170 734 + 39% of taxable income above 641 400 |
| 817 601 – 1 731 600 | 239 452 + 41% of taxable income above 817 600 |
| 1 731 601 and above | 614 192 + 45% of taxable income above 1 731 600 |
Sources:
https://www.sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/Employment Types in South Africa
When it comes to employment in South Africa, there are different types of arrangements that employers can utilize. Understanding these employment types is crucial for complying with labor regulations and ensuring fair treatment of workers. Here are the key employment types in South Africa:
1. Employee
- Full-time Permanent Employment: This is a standard employment arrangement where employees work on a permanent basis, typically for a set number of hours per week.
- Fixed-Term Employment: Employees are hired for a specific period or project with a predetermined end date.
- Part-Time Employment: Employees work fewer hours than full-time employees, and they may have different entitlements based on the number of hours worked.
- Employment below the Minimum Hours: Some employees may work below the minimum hours per month, which may result in exclusion from certain minimum benefits.
Certain regulations apply to fixed-term and part-time employees to prevent exploitation:
- Reasonable Expectation of Renewal: If fixed-term contracts are repeatedly renewed, there may be a reasonable expectation of continued employment, potentially leading to the conversion of the contract to permanent employment.
- Threshold Amount: If a fixed-term employee earns below a specified threshold (currently ZAR224,080.48 per annum), they may be deemed to be employed on a permanent basis, unless specific exceptions apply. Such employees should not be treated less favorably unless justified.
2. Independent Contractor
- Independent contractors are not considered employees and are therefore excluded from certain employment protections.
- The distinction between an independent contractor and an employee is determined based on various factors, such as the level of supervision and control exercised by the employer.
- If certain elements resembling an employment relationship exist, such as employer supervision, the presumption of employment applies to contractors earning below the threshold.
3. Agency Worker
- Agency workers are individuals placed at a client's site through a temporary employment service.
- If an agency worker is placed at the client for longer than three months, they are deemed employed by the client for purposes of the Labour Relations Act. However, they remain employed by the agency for other legislation.
- Agency workers are entitled to be treated no less favorably than comparable permanent employees of the client, unless there are justifiable reasons for different treatment.
Employers must be aware of their obligations and rights associated with each employment type to ensure compliance with labor laws and promote fair working conditions in South Africa.