South Africa
Hire Employees & Contractors

South Africa

Compliantly hire your distributed team members in

South Africa

Person working on laptop

Hiring in

South Africa

isn't so simple. Borderless can help.

To hire new employees in

South Africa

, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in

South Africa

while staying fully compliant with local laws and compliance.

Primary Language

English, Afrikaans

Currency

South African Rand (R, ZAR)

Payroll Frequency

Monthly, weekly, or bi-weekly

Public Holidays

12 days

Employer Taxes

2%

Cost of Living Index

$$ (77 of 139 nations)

Statutory Leave

21 days

Sick Leave

30 days

Maternity Leave

4 months, unpaid

Important: Risks of misclassification

In many countries like

South Africa

, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

The minimum wage in South Africa is R25,42 per hour, but this can vary by sector. 

Overtime Pay

The maximum normal workweek in South Africa is 45 hours. The maximum allowed overtime is three hours on any single day and 10 hours per week. 

Overtime hours are compensated at 1.5 times the normal pay rate.

Additional Pay

There are no additional payments required in South Africa.

Payroll Cycle

For all Borderless customers, employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 1%: Skills Development Levy (SDL)
  • 1%: Unemployment Insurance Fund (UIF)

Employee Costs & Taxes

  • 1%: Unemployment Insurance Fund (UIF)
  • 18%: Up to 205,900
  • 37,062 + 26% of taxable income above 205,900: 205,901 - 321,600
  • 67,144 + 31% of taxable income above 321,600: 321,601 - 445,100
  • 105,429 + 36% of taxable income above 445,100: 445,101 - 584,200
  • 155,505 + 39% of taxable income above 584,200: 584,201 - 744,800
  • 218,139 + 41% of taxable income above 744,800: 744,801 - 1,577,300
  • 559,464 + 45% of taxable income above 1,577,300: Above 1,577,301

Employment Information

Termination Process

Employers in South Africa have the right to fire an employee at any time. Dismissals can occur for a variety of reasons, including:

  • Dismissal without cause for misconduct (such as theft or other serious misconduct);
  • Dismissal due to incapacity (for example, illness or poor performance), usually after a chance to meet performance standards;
  • Dismissal due to the company's operational requirements; or Termination by separation agreement agreed upon by the employee and employer

Notice period

The statutory notice period for an employer is determined by the length of employment:

  • 1 week for less than 6 months
  • 2 weeks between 6 months and 1 year
  • More than one year: four weeks

Probation Period

Probationary periods are permitted, but they must be reasonable in length in order to determine whether the employee is suitable for the job. 3 to 6 months is fairly typical.

Severance Details

In South Africa, a retrenched employee must be paid at least one week's pay for each completed year of ongoing service, or the amount agreed in the employment contract if it is higher.

Unused leave must be reimbursed.

Aside from severance, potential additional payments include:

  • Notice pay in the event that the employee does not work during the notice period:
  • If the length of service is less than 6 months, 1 week's notice is required
  • If you have been with the company for more than 6 months but less than a year, you will be paid two weeks' notice
  • Bonus/pension pay: any pro-rata payment of a bonus, pension, and so on, depending on the employment contract
Benefits of working in a country abroad

Borderless Benefits Packages in

South Africa

When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in

South Africa

Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo