* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Johannesburg, Pretoria & Bloemfontein

South African Rand (R)



Employment Cost


Annual Leave

15 days

In-demand Specialties*
Customer & Technical Support, Back-Office Services, App Development & It

The Ultimate Guide to Hiring Employees in South Africa

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-South Africa-guide

Key Considerations Before Hiring In South Africa

Employing in South Africa requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in South Africa with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in South Africa quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.


Fundamental Aspects of Employment in South Africa

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:

  • The company’s disciplinary codes
  • The date of commencement of employment
  • The employees ordinary working days and work hours
  • The employee’s wage rate and method of calculating wages

Probationary Period in South Africa

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.

Working hours in South Africa

In South African employment, there are specific working hour regulations for different age groups. Those aged 17 or younger have a maximum of 8 hours per day and 40 hours per week. Employees aged 18 or older can work up to 48 hours per week. Additionally, a minimum 20-minute meal break is required for work exceeding 6 hours. Typical weekday working hours are 9 am to 5:30 pm, promoting a structured balance between productivity and employee well-being.

Overtime in South Africa

In South African employment, employers aren't obliged to provide overtime pay, but there's a safeguard: if an employee exceeds 40 hours per week, their average pay for that period must meet the National Minimum Wage. Employment contracts usually specify overtime rates and calculations for transparency, promoting fair and mutually beneficial working relationships in line with South African employment norms.

Navigating Key Aspects of Payroll in South Africa

SA has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 March - 28/29 February

Fiscal Year in South Africa

1 March - 28/29 February is the 12-month accounting period that businesses in South Africa use for financial and tax reporting purposes.

Payroll Cycle in South Africa

The payroll cycle in South Africa is usually monthly, with employees being paid by the 25th of the month.
25.4 ZAR p/h

Minimum Wage in South Africa

The minimum wage for employees in South Africa is typically 25.4 ZAR per hour, amounting to ~4,064 ZAR per month for a typical 40 hour work week.

Minimum wages and salaries in South Africa

The minimum wage in South Africa is 25.42 ZAR an hour.

Bonus Payments in South Africa

13th-month salary payments in South Africa are not legally required but are customary, and are typically paid in December of each year.

Comprehensive Overview of Employment Taxes in South Africa

Understanding the tax obligations for both employers and employees is crucial when operating in South Africa's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in South Africa.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 2.00% on top of the employee salary in South Africa.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In South Africa, the typical estimation for employee payroll contributions cost is around 1%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

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.

Tax Rate Income Bracket

Pension in South Africa

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.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in South Africa

When it comes to terminating employment in South Africa, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

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:

  • Misconduct
  • Poor work performance
  • Ill health
  • Operational requirements

Notice Period

In South Africa, unless a longer notice period is stipulated in the Employment agreement, the legislative minimum notice period is:

  • 1 week for employees with less than 6 months service
  • 2 weeks for employees with 6 to 12 months service.
  • 4 weeks for employees with 12 or months service

Severance Pay

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.

Annual Leave Entitlements and Company Policies in South Africa

The annual leave entitlement in South Africa is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in South Africa

South Africa has 12 mandatory national public holidays in a year.

Holiday Date

Paid Time Off in South Africa

Maternity Leave in South Africa

Paternity Leave in South Africa

Sick Leave in South Africa

Parental Leave In South Africa

South Africa's Benefits Built Into Playroll

Competitive benefits package in South Africa

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in South Africa's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In South Africa

Make your benefits package in South Africa a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • Employee Wellness
  • IT Equipment Sourcing

Statutory benefits for employment in South Africa

Playroll allows you to provide localized benefits for employees in South Africa within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in South Africa create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for 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. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in South Africa.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!