Data Report: Why You Should Hire Developers From South Africa’s Emerging Tech Talent Pool

South Africa emerges as a top destination for global businesses to hire developers, offering proficient software engineers within the same time zone as many European countries.

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Julienne Raboca

March 28, 2024

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Key Takeaways

In the digital age's quest for innovation, finding the right developers isn't just about skill—it's about strategy. 

Average salary* for a senior developer: Amsterdam & Berlin vs. Cape Town

Location Average Salary* for a Senior Developer
Amsterdam €80,000
Berlin €80,000
Cape Town €60,000
*Note: These figures are rough ballparks.

As businesses around the globe dart past traditional tech bastions like Silicon Valley and the tech incubators of Eastern European countries, including developer-rich areas like the Czech Republic, a new question echoes in the corridors of innovation: "Where do software engineers work?"

The answer? Look no further than South Africa's vibrant shores—where to hire developers with average salaries that are competitive yet fair. Here, amidst a dynamic tech scene, lies an untapped goldmine of software engineering talent. 

Operating within the GMT+2 time zones, fluent in English, and commanding surprisingly competitive salaries, South African developers are the secret sauce for US and European enterprises hungry for growth without the hefty price tag. This makes South Africa not just a contender but arguably the best country to hire developers, considering the balance of cost, skills, and operational synergy. 

Comparing Employer Obligations: Tax and Social Security in South Africa vs. Holland, Germany, and the UK

Netherlands Germany UK SA
Holiday Allowance Unemployment Insurance Fund Pension Fund Unemployment Insurance Fund (UIF)
Health Insurance (ZVW) Pension Fund National Insurance Skills Development Levy
Work & Income Scheme (WIA) Employer Allocation Health Insurance
Unemployment Benefits Scheme (WW) Government Health Insurance
Long-Term Care Insurance

In South Africa, handling tax and social security for employees is simpler for employers. Both the employer and the employee pay 1% of the employee's salary to the Unemployment Insurance Fund. This fund helps support workers if they lose their jobs. 

On top of that, if a company is registered, it also pays 1% of its total salaries to the Skills Development Levy, which is used to improve workers' skills. Overall, these rules make it easier for employers to manage their financial duties.

Welcome to South Africa—a place where the future of tech talent not only resides but thrives.

Together with developer hiring marketplace OfferZen, Playroll has created a special report venturing into the merits of adding South African talent into your business. Scroll down to discover the strategic value and operational benefits they can bring to global development projects.

Advantages of Hiring South African Developers

  • Faster Team Building: Unlike in Germany, where the typical notice period is 3 months, South Africa has a standard notice period of just 1 month. This allows for quicker hiring and team assembly, accelerating project timelines.
  • Robust Talent Pool: Access developers proficient in cutting-edge technologies as well as those skilled in fundamental programming languages.
  • Benefit from minimal time zone differences, facilitating real-time collaboration with a team based in a GMT+2 region.
  • High English proficiency among South African developers ensures seamless integration with existing teams.
  • Economic Efficiency: Enjoy the financial advantages of hiring in a market where the country pays software engineers competitively yet remains cost-effective for foreign businesses.
  • Strategic Hiring Freedom: With Playroll's global employment solutions, navigate the complexities of international hiring, ensuring compliance and operational ease, making it easier for companies to engage with global talent.

A glance at annual employment costs reveals a game-changer: Cape Town offers the same top-tier tech talent at nearly half the cost. This isn't just about saving money; it's about smart investing. 

Cape Town isn't just another option–it's the strategic choice for tech firms prioritizing both financial savvy and innovation.

Amsterdam, Netherlands Berlin, Germany London, UK Cape Town, South Africa
Salary €61,000 €62,000 €73,000 €41,000
Overheads (Percent) €15,869 (26%) €13,768 (20%) €10,145 (13.8%) €515 (1.2%)
Annual EOR Fee Estimates €4,502.40 €4,502.40 €3,638.40 €2,988
Total €81,371.49 €80,270.40 €86,783 €44,503

Data source: OZ survey, Stackoverflow 2023

Our report offers a deep dive into hiring from different dynamic markets, covering the cost of living adjustments and offering insights valuable to European developers and those from across the globe.

Download Report

This exploration underscores South Africa's standing among the best offshore software development countries, offering talent at par with any developer in Eastern Europe.

Whether you're considering where software engineers work globally or seeking to pinpoint the best countries for software engineers, South Africa offers a compelling answer, merging the best of both worlds: quality and affordability.

The OfferZen x Playroll Advantage

Leverage the OfferZen x Playroll Advantage: a synergy that turbocharges hiring. OfferZen, a vetted developer marketplace, ensures CTOs maximize their resources, boasting a swift 25-day hiring cycle. Playroll complements this by simplifying hiring, onboarding, and management with its comprehensive SaaS solution, ensuring compliance and global reach. Together, they're not just tools but a strategy for growth, seamlessly connecting Western Europe and beyond with top-tier talent.

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