Explore our vision: a world without limits

Watch now

Speed up your global expansion! Expand smartly in 150+ countries with the #1 rated EOR globally.

Explore Multiplier EOR

Book a demo

Expand your global workforce in South Africa

Your guide to the employment landscape, working customs and local labor laws in

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

Talent overview

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:

Software Development, Business Management, Sales, Information Technology, Banking and Financing, Engineering

Top local universities in South Africa

Uni1 52

University of Cape Town

RANKING

Local: 1

World : 336

Uni3 39

University of the Witwatersrand

RANKING

Local: 2

World: 469

Uni2 46

University of Pretoria

RANKING

Local: 3

World: 475

Uni4 40

Universiteit Stellenbosch

RANKING

Local: 4

World : 503

Uni5 South Africa

University of KwaZulu-Natal

RANKING

Local: 5

World: 897

Top Local Job Boards:

careers24, Jobvine, BestJobs, CareerJunction

Number of LinkedIn users:

10,580,000

Top Recruitment Agencies:

Acuity Consultants, Lexdan Select, CA Financial Appointments

Where to find talent

Top Local Job Boards:

Number of LinkedIn users:

Top Recruitment Agencies:

Salary Data

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

Employ in South Africa

Employing in South Africa

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:

Employee Contract

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.

Probation Period

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.

Public and Provincial Holidays

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 in South Africa

Tw Payroll Img1

Payroll cycle

In South Africa, payroll is released monthly and is usually given every 25th day of the month.

Tw Payroll Img2

Minimum wage

The minimum wage in South Africa is ZAR 27.58 per hour.

Tw Payroll Img3

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.

How taxes work

Employer Payroll Tax

Type of Contribution Tax Rate
Unemployment Insurance 1% (capped at ZAR 212,544 annually)
Skills Development Levy (SDL) 1%

Employee Payroll Tax

Type of Contribution Tax Rate
Unemployment Insurance 1% (capped at ZAR 212,544 annually)

Employee Income Tax

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

VAT

The standard rate for VAT in South Africa is 15%.

Bonus

13th Month Pay

A 13th month pay in South Africa is not mandatory.

Employee Benefits

Below are some of the benefits that South African employees receive upon employment:

  • Statutory Leaves
  • Unemployment Funds
  • Healthcare Insurance
  • Retirement Plans and Pension
  • Skills development benefits
  • Occupational Accidents and Diseases benefits

Employee offboarding

Termination of employment contracts in South Africa may occur for varying reasons. Below are some of them:

  • Expiration of employment contract
  • Completion of the employment task
  • Notification of either parties
  • Summary termination due to company breach
  • Mutual agreement
  • Employer Insolvency
  • Employee Misconduct
  • Unsatisfactory employee performance

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.

Tw Visa Img

Visa and
immigration

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:

  • General work visa
  • Critical skills work visa
  • Intra-company transfer work visa
  • Corporate visa

Expand into
150+ countries

Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.

Expand into150+ countries