South Africa

South Africa stands as the continent's most developed economy, offering a diverse labor market and a robust legal framework. In 2025, the country continues to attract local and international businesses. Understanding the intricacies of local employment laws, tax obligations, and payroll practices is essential for compliance and operational success.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
South African rand (ZAR)
Payroll Frequency
Monthly, bi-weekly or weekly
Employer Taxes
2%

Overview

Population
~ 60 million
Language
11, including English, Afrikaans, isiZulu, and isiXhosa
Capital
Pretoria (administrative), Bloemfontein (judicial), Cape Town (legislative)
Currency
South African rand (ZAR)
Country code
+27
Min wage
ZAR 28.79 per hour
Working hours
9 hours per day
Weekdays
Monday to Friday
Work hours per week
45 hours per week

Payroll

Salaried Employees
Time-Based Employees
13th Salary

Not mandatory; subject to employer discretion

Avg employer tax

2%

Tax Breakdown

Personal Income Tax (PIT):

Up to ZAR 237,100
18%
ZAR 237,101 – ZAR 370,500
26%
ZAR 370,501 – ZAR 550,100
31%
ZAR 550,101 – ZAR 701,300
36%
ZAR 701,301 – ZAR 1,050,000
39%
ZAR 1,050,001 – ZAR 1,500,000
41%
Above ZAR 1,500,000
45%

Corporate Income Tax (CIT):

Standard Rate
27% for the 2025/2026 assessment year

Social Security Contributions:

Employee Contributions:

Unemployment Insurance Fund (UIF)
1% of gross salary
Skills Development Levy (SDL)
1% of gross salary (applicable to employers; employees do not contribute)

Employer Contributions:

UIF
1% of gross salary
SDL
1% of gross salary

VAT

VAT

15%

Tax Calculation for South Africa
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ZA
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Top Countries
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in South Africa typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the South African Revenue Service (SARS) for tax purposes and the Department of Employment and Labour for UIF contributions

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in South Africa
When drafting an employment contract for employees in South Africa, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • 30 days every 36 months; during the first 6 months of employment, employees are entitled to 1 day of paid sick leave for every 26 days worked
Maternity leave
  • 4 months unpaid; employees may claim benefits from the Unemployment Insurance Fund (UIF)

Paternity leave
  • Not statutory; subject to employer policies

Parental Leave:

  • Not statutory; subject to employer policies

Bereavement Leave:

  • Not statutory; subject to employer policies
Annual Leave
  • Minimum of 21 working days per year
11 Public holidays in South Africa

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
21st
Human Rights Day
18th
Good Friday
27th
Freedom Day
1st
Labor Day
16th
Youth Day
9th
National Women's Day
24th
Heritage Day
16th
Day of Reconciliation
25th
Christmas Day
26th
Day of Goodwill
  • 1 Jan: New Year's Day
  • 21 Mar: Human Rights Day
  • 15 Apr: Good Friday
  • 18 Apr: Family Day
  • 27 Apr: Freedom Day
  • 1 May: Workers' Day
  • 2 May: Workers' Day Holiday
  • 16 Jun: Youth Day
  • 9 Aug: National Women's Day
  • 24 Sep: Heritage Day
  • 16 Dec: Day of Reconciliation
  • 25 Dec: Christmas Day
  • 26 Dec: Day of Goodwill

Termination Process

Notice Period

  • Employee-Initiated: 1 week
  • Employer-Initiated: 1 week to 4 weeks, depending on length of service

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 1 week's notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with 1 week's notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in South Africa
with RemotePass

South Africa offers a strategic gateway to the African market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in South Africa, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including South Africa.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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South Africa

South Africa stands as the continent's most developed economy, offering a diverse labor market and a robust legal framework. In 2025, the country continues to attract local and international businesses. Understanding the intricacies of local employment laws, tax obligations, and payroll practices is essential for compliance and operational success.
Contractor Management
EOR
Payroll
Contractor of Record
العملة
South African rand (ZAR)
تردد الرواتب
Monthly, bi-weekly or weekly
ضرائب أصحاب العمل
2%

نظرة عامة

التركيبة السكانية
~ 60 million
اللغة
11, including English, Afrikaans, isiZulu, and isiXhosa
العاصمة
Pretoria (administrative), Bloemfontein (judicial), Cape Town (legislative)
العملة
South African rand (ZAR)
رمز الاتصال الدولي
+27
الحد الأدنى للأجور
ZAR 28.79 per hour
ساعات العمل
9 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
45 hours per week

الرواتب

الموظفون برواتب ثابتة
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory; subject to employer discretion

متوسط ​​ضريبة صاحب العمل

2%

تحصيل الضرائب

Personal Income Tax (PIT):

Up to ZAR 237,100
18%
ZAR 237,101 – ZAR 370,500
26%
ZAR 370,501 – ZAR 550,100
31%
ZAR 550,101 – ZAR 701,300
36%
ZAR 701,301 – ZAR 1,050,000
39%
ZAR 1,050,001 – ZAR 1,500,000
41%
Above ZAR 1,500,000
45%

Corporate Income Tax (CIT):

Standard Rate
27% for the 2025/2026 assessment year

Social Security Contributions:

Employee Contributions:

Unemployment Insurance Fund (UIF)
1% of gross salary
Skills Development Levy (SDL)
1% of gross salary (applicable to employers; employees do not contribute)

Employer Contributions:

UIF
1% of gross salary
SDL
1% of gross salary

ضريبة القيمة المضافة

ضريبة القيمة المضافة

15%

حساب الضريبة في South Africa
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ZA
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Top Countries
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في South Africa عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions

Registration with Authorities

Register the employee with the South African Revenue Service (SARS) for tax purposes and the Department of Employment and Labour for UIF contributions

Payroll Setup

Ensure accurate calculation and withholding of taxes and social security contributions

Employee Documentation

Collect personal identification, bank account details, and tax information

Workplace Policies

Provide access to company policies, health and safety guidelines, and any applicable collective agreements

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في South Africa
عند إعداد عقد عمل للموظفين في South Africa يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • 30 days every 36 months; during the first 6 months of employment, employees are entitled to 1 day of paid sick leave for every 26 days worked
إجازة الأمومة
  • 4 months unpaid; employees may claim benefits from the Unemployment Insurance Fund (UIF)

إجازة الأبوة
  • Not statutory; subject to employer policies

Parental Leave:

  • Not statutory; subject to employer policies

Bereavement Leave:

  • Not statutory; subject to employer policies
الإجازة السنوية
  • Minimum of 21 working days per year
11 عطلات رسمية في South Africa

Note: Some holidays may be observed on different dates or may be extended, depending on regional regulations.

1st
New Year's Day
21st
Human Rights Day
18th
Good Friday
27th
Freedom Day
1st
Labor Day
16th
Youth Day
9th
National Women's Day
24th
Heritage Day
16th
Day of Reconciliation
25th
Christmas Day
26th
Day of Goodwill
  • 1 Jan: New Year's Day
  • 21 Mar: Human Rights Day
  • 15 Apr: Good Friday
  • 18 Apr: Family Day
  • 27 Apr: Freedom Day
  • 1 May: Workers' Day
  • 2 May: Workers' Day Holiday
  • 16 Jun: Youth Day
  • 9 Aug: National Women's Day
  • 24 Sep: Heritage Day
  • 16 Dec: Day of Reconciliation
  • 25 Dec: Christmas Day
  • 26 Dec: Day of Goodwill

عملية إنهاء العقود

Notice Period

  • Employee-Initiated: 1 week
  • Employer-Initiated: 1 week to 4 weeks, depending on length of service

Severance Pay

Not mandatory; subject to employment agreements

Termination During Probation

Either party can terminate with 1 week's notice

Probation Period

  • Maximum Duration: 6 months
  • Extension: Permitted if agreed upon by both parties
  • Termination During Probation: Either party can terminate with 1 week's notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في South Africa
مع ريموت باس

South Africa offers a strategic gateway to the African market, with a skilled workforce and favorable business conditions. RemotePass simplifies the process of hiring and managing employees in South Africa, ensuring compliance with local laws, handling payroll and benefits, and providing a seamless experience for both employers and employees.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك South Africa.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

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