Talent Wiki - South Africa
Your quick guide on talent and labor compliance norms 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
Payroll Frequency
Monthly
GDP per Capita
$6,812.82
Employer Tax
2%
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
Local Universities
The top local universities in South Africa includes:
University of Cape Town
RANKING
Local: 1
World : 336
University of the Witwatersrand
RANKING
Local: 2
World: 469
University of Pretoria
RANKING
Local: 3
World: 475
Universiteit Stellenbosch
RANKING
Local: 4
World : 503
University of KwaZulu-Natal
RANKING
Local: 5
World: 897
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 |
Talent Sourcing Tips
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
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
New employees in South Africa are expected to undergo a probation period of up to 3 months.
Public and Provincial Holidays 2023
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | Public Holiday |
| 2 Jan | New Year Holiday | Public Holiday |
| 21 Mar | Human Rights Day | Public Holiday |
| 7 Apr | Good Friday | Public Holiday |
| 10 Apr | Family Day | Public Holiday |
| 27 Apr | Freedom Day | Public Holiday |
| 1 May | Workers’ Day | Public Holiday |
| 16 Jun | Youth Day | Public Holiday |
| 9 Aug | National Women’s Day | Public Holiday |
| 24 Sep | Heritage Day | Public Holiday |
| 25 Sep | Heritage Day Holiday | Public Holiday |
| 16 Dec | Day of Reconciliation | Public Holiday |
| 25 Dec | Christmas Day | Public Holiday |
| 26 Dec | Day of Goodwill | Public Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 21 days | Yes |
| Sick Leave | 30 days | Yes |
| Maternity Leave | 4 months | Yes |
Payroll
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 23.19 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.
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
Taxes
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
| Income (ZAR) | Tax amount (ZAR) | Tax on excess (%) |
| 0 to 226,000 | 0 | 18 |
| 226,001 to 353,100 | 40,680 | 26 |
| 353,101 to 488,700 | 73,726 | 31 |
| 488,701 to 641,400 | 115,762 | 36 |
| 641,401 to 817,600 | 170,734 | 39 |
| 817,601 to 1,731,600 | 239,452 | 41 |
| 1,731,601 and above | 614,192 | 45 |
VAT
The standard rate for VAT in South Africa is 15%.
Offboarding & Termination
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.
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
