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Your guide to the employment landscape, working customs and local labor laws in South Africa
Capital
Cape Town, Pretoria, Bloemfontein
Currency
South African Rand (ZAR)
Languages
Afrikaans, English, Xhosa, Zulu, Southern Sotho, Venda, Tswana, Northern Sotho, Tsonga, Swati, Ndebele
GDP per Capita
$6,812.82
Employer Tax
2%
Payroll Frequency
Monthly
South Africa is an upper, middle income economy and is one of the largest economies in the African continent. The country is known for its abundance in natural resources, which has greatly contributed to their GDP. Among the natural products they produce are platinum, gold, titanium, chromium, phosphate, vanadium, iron ore, cobalt, uranium and manganese.
Major economic hubs:
Johannesburg, Cape Town, Ekurhuleni, and Tshwane
Skills in demand:
Local: 1
World : 336
Local: 2
World: 469
Local: 3
World: 475
Local: 4
World : 503
Local: 5
World: 897
careers24, Jobvine, BestJobs, CareerJunction
10,580,000
Acuity Consultants, Lexdan Select, CA Financial Appointments
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Some of the jobs in South Africa with annual monthly salary are as follows;
Job Title | Average Monthly Salary (ZAR) | Average Monthly Salary (USD) |
Accounting Manager | 46,300 | 2718.94 |
Software Engineer | 30,800 | 1808.71 |
Data Analyst | 28,300 | 1661.90 |
User Experience Designer | 21,400 | 1256.70 |
Project Manager | 41,000 | 2407.70 |
Sales Manager | 57,400 | 3370.78 |
Employees in South Africa are protected by the employment legislations set by their government. When onboarding locals in the country, it is important that the employer is knowledgeable of these laws for their employees’ welfare. Below are some of the rules that they must observe for their workforce:
Due to the diversity in South Africa, employment contracts must be written in a language that both the employer and employee understands. In the event that both parties have differing language preference, a translation must be prepared. This must also be applied in the event of employment proceedings.
In South Africa, probation periods generally last around three months, though the exact timeframe depends on the specific job and terms outlined in the employment contract. There are no strict legal regulations dictating the length of a probationary period—only that it must be “reasonable” given the nature of the role. Ultimately, the employer determines the duration based on what is appropriate for the position.
Date | Name | Type |
January 1 | New Year’s Day | National Holiday |
March 21 | Human Rights Day | National Holiday |
April 18 | Good Friday | National Holiday |
April 21 | Family Day | National Holiday |
April 27 | Freedom Day | National Holiday |
April 28 | Freedom Day observed | National Holiday |
May 1 | Workers’ Day | National Holiday |
June 16 | Youth Day | National Holiday |
August 9 | National Women’s Day | National Holiday |
September 24 | Heritage Day | National Holiday |
December 16 | Day of Reconciliation | National Holiday |
December 25 | Christmas Day | National Holiday |
December 26 | Day of Goodwill | National Holiday |
Employee Leaves
Type of Leave | Time Period | Mandatory |
Annual Leave | 21 days | Yes |
Sick Leave | 30 days | Yes |
Maternity Leave | 4 months | Yes |
Leave Compliance
Pre-Requisites |
The employee is eligible for annual leave once they have completed 365 Days of service. |
Number of Leaves |
The employee is eligible for 21 Days of annual leave. |
Accruals |
The employee earns 1 Days of leave for every 17 Days served. |
Carry Forward |
The employee can carry forward unused leaves and they must be used within 6 Months. |
Payroll cycle
In South Africa, payroll is released monthly and is usually given every 25th day of the month.
Minimum wage
The minimum wage in South Africa is ZAR 27.58 per hour.
Overtime pay
Employees exceeding the 45 hours of work in a week are paid either 1.5 times the hourly rate or an equivalent amount of time off.
Type of Contribution | Tax Rate |
Unemployment Insurance | 1% (capped at ZAR 212,544 annually) |
Skills Development Levy (SDL) | 1% |
Type of Contribution | Tax Rate |
Unemployment Insurance | 1% (capped at ZAR 212,544 annually) |
Taxable Income (ZAR, South African Rand) | Tax Rates (ZAR, South African Rand) |
0 to 237,000 | 18% of taxable income |
237,001 to 370,500 | 40,680 + 26% of taxable income above 237,100 |
370,501 to 512,800 | 73,726 + 31% of taxable income above 370,500 |
512,801 to 673,000 | 115,762 + 36% of taxable income above 512,800 |
673,001 to 857,900 | 170,734 + 39% of taxable income above 673,000 |
857,001 to 1,817,000 | 239,452 + 41% of taxable income above 857,900 |
1,817,001 and above | 614,192 + 45% of taxable income above 1,817,000 |
The standard rate for VAT in South Africa is 15%.
A 13th month pay in South Africa is not mandatory.
Below are some of the benefits that South African employees receive upon employment:
Termination of employment contracts in South Africa may occur for varying reasons. Below are some of them:
Notice Period in South Africa is up to one month.
Employers must pay their terminated employees a severance pay equal to one week’s worth of salary for every year of completed service.
Foreigners applying for job positions in South Africa must apply for a work visa to legally work in the country. Below are the different types that expats can apply for:
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