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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
South Africa's unemployment rate in 2023 was recorded at 32.9%, and is among the highest in the world. International companies may view South Africa’s high unemployment rate as a positive opportunity to employ qualified workers who may be struggling to find work.
We know that the main reasons for outsourcing are financial gain and reduction of expenses. Studies have shown that European companies tend to save up to 50% on staff by hiring South Africans.
South Africa has 11 official languages that are recognised equally by law, but the language of education, media and political broadcasts is primarily English. The ubiquity of English in South Africa makes international outsourcing an easy task (and often for a fraction of the cost!).
South Africa has one of the most convenient time zones to facilitate international business. The local time is two hours ahead of GMT and just one hour ahead of Paris. If your business or your clients are located in Europe, outsourcing to South Africa is one the most financially viable options available. For North American companies, calls can be scheduled in the late afternoon, while Australia will have an early morning slot.
When employing an individual in South Africa, the Basic Conditions of Employment Act (No. 75 of 1997 – the BCEA) compels an employer to give an employee a host of prescribed employment details in writing when they start work. The employer should also provide a contract of employment that is signed by both parties detailing:
Probationary periods in South Africa, are optional, but are often used to help mitigate risk in hiring. Employees can be subject to a probationary period that enables the employer to assess employees’ skills. General practice is 3-months.
In South African employment, employees are permitted to work a maximum of 9 hours or day/ 45 hours per week or a maximum of 8 hours per day if the employee works more than 5 days per week. Additionally, an employee is entitled to a 60 minute meal interval after 5 hours of continuous work. Typical weekday working hours are 9 am to 5:30 pm, promoting a structured balance between productivity and employee well-being.
In South African employment, employees are not permitted to work more than 10 hours of overtime per week. Overtime is paid at 1.5 times employee's normal wage or an employee may agree to receive paid time off. Employment contracts usually specify overtime rates and calculations for transparency, promoting fair and mutually beneficial working relationships in line with South African employment norms.
The minimum wage in South Africa is 27.47 ZAR an hour.
13th-month salary payments in South Africa are not legally required but are customary, and are typically paid in December of each year.
Income tax in South Africa is 'Pay As You Earn'. The individual income tax ranges from 18% to 45%. Income tax is calculated according to progressive rates.
No mandatory pension contributions in South Africa.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in South Africa tailored to your needs.
In South Africa, any terminations of employment must be for a fair reason and in accordance with a fair process. An employee may be terminated fairly for one of the following reasons:
In South Africa, unless a longer notice period is stipulated in the Employment agreement, the legislative minimum notice period is:
Severance pay is only mandatory when terminating an employee for operational requirements. Minimum severance pay is equal to 1 weeks pay for every completed year of service.
South Africa has 12 mandatory national public holidays in a year.
There are no mandatory benefits that Employers are required to provide in South Africa.
At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.
It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
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