Legal employment for your global team
Your global team, locally employed
Global work management
Manage all admin tasks from one place
Premium benefits for your global team
Relocate your team anywhere
Localised employment contracts
South Africa is becoming a leading talent hub, known for its skilled English-speaking workforce and well-established infrastructure. Having a diverse labour market, strong digital capabilities, and competitive employment costs, hiring in South Africa could be a strategic move for businesses that want to scale their remote teams.
South Africa is one of the Asian countries that offer access to a large and talented workforce, along with competitive labour costs for international employers. The country has its own legal framework covering employment contracts, minimum wage, tax obligations, and social contributions that companies must comply with.
Discover more about salaries, employment costs, and legal requirements for hiring in South Africa. Get our full hiring guide now!
Employment contracts in South Africa must be in written form and contain elements such as remuneration, working hours, leave entitlements, and termination notice. In addition, employment contracts must be compliant with the BCEA’s (Basic Conditions of Employment Act) minimum conditions.
Notice periods: Ranging from one week to four weeks, depending on the length of employment.
Termination of employment: Termination must be based on valid reasons (misconduct, incapacity, operational requirements, etc).
Want to learn more about employment contracts in South Africa? Get our full template now!
Employers in South Africa must provide mandatory employment benefits in line with the country’s labour law. Many of them also offer extra perks to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.
Curious to discover all the employment benefits available in South Africa?
South Africa has a comprehensive tax system that applies to both individuals and employers. Companies must deduct employee income tax (PAYE), contribute to statutory funds such as UIF, and follow VAT and other tax rules, depending on the business structure and income type.
Personal income tax rate: From 18% to 45%, depending on income brackets.
VAT: 15%
Want to explore South Africa’s tax allowances and similar tax regulations?
Salaries in South Africa are calculated on a monthly basis, with employees receiving 12 monthly salary payments each year. Salary payments must be compliant with local labour rules, including those for minimum wages, etc.
Salary payment deadline: By the last day of the month.
Taxes and contributions payment deadline: By the 7th of the following month.
Payroll declarations deadline: By the 7th of the following month.
Payroll currency: ZAR
South Africa’s labour law is primarily governed by the Labour Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA). It covers essential aspects like employment contracts, working hours, wages, leave entitlements, employee benefits, social security, and more.
Total employment cost: Base salary, bonuses, and mandatory contributions
Minimum wage: ZAR 28.79 per hour
Probation period: No mandatory duration
With EOR services in South Africa, you can legally employ individuals in the country without establishing a local legal entity. The EOR takes over all the legal responsibilities as an official employer, including:
With PEO services in South Africa, you can get the necessary HR and administrative support while you remain the legal employer. PEO services are beneficial for employers who already have legal entities in the country but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per South Africa’s labour laws. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Whether you're paying full-time employees or gig workers, we make it easy, efficient, and people-first in 85+ countries, with 70% less admin work.
Step 1
Step 2
When hiring freelancers or gig workers in South Africa, it’s important to ensure that the working arrangement doesn’t resemble full-time employment. Freelancers are considered independent contractors, meaning they manage their own taxes and are not entitled to employment benefits.
However, South African labour laws may reclassify a contractor as an employee if the terms of work include fixed hours and other terms that resemble full-time employment. To avoid this, it’s important to have a clear contract with well-defined scopes of work.
