Employer of Record (EOR) in South Africa
Hiring in South Africa? We’ve got you covered. Native Teams helps you employ local workers without the hassle of setting up a legal entity. We manage payroll, taxes, and benefits, so you can focus on what matters most—growing your team.
How does an EOR in South Africa work?
Expanding your business into South Africa requires a deep understanding of labour laws, tax regulations, and compliance requirements. By partnering with Native Teams, you can hire employees quickly and legally, without the administrative burden of setting up a local entity.
Our EOR service covers everything from drafting legally compliant employment contracts to processing payroll and managing statutory tax deductions. We also handle employee benefits, ensuring your workforce receives everything they are entitled to under South African law. This allows you to build and manage your team efficiently, while we take care of compliance and operational responsibilities.
Who can use EOR services in South Africa?
EOR services are ideal for international businesses looking to establish a presence in South Africa without the hassle of company registration. Whether you’re testing the market, scaling your workforce, or hiring remote employees, our solution provides a hassle-free way to onboard and manage talent.
Businesses in industries such as technology, finance, consulting, and manufacturing can leverage our EOR services to expand their operations while remaining compliant with South African labour laws.
Features of Native Teams EOR services in South Africa
Employment status
South African labour laws require that all employees have formal employment contracts that outline salary, job responsibilities, working conditions, and benefits. We also assist with contract amendments, managing probation periods, and terminations, providing legal security for both employers and employees.
HR administration and documentation
We’ll take care of all your HR administration—automating processes, managing compliance, and securely storing documentation for all your global employees. With everything centralised in your Native Teams dashboard, you’ll have instant, one-click access to contracts, payslips, tax documents, and more.
Global payroll
Global payroll Native Teams ensures that your employees are paid accurately and on time, with all salary payments, tax deductions, and social security contributions handled in strict accordance with South African Revenue Service (SARS) regulations. We take care of monthly payroll processing, payslip distribution, and end-of-year tax reporting, ensuring smooth payroll operations while reducing administrative burdens for your business.
Benefits
Native Teams provides comprehensive benefits administration, including access to private health insurance, pension schemes, and statutory leave entitlements. South African employees are entitled to benefits such as paid annual leave, maternity and paternity leave, sick leave, and severance pay.
For more details on South African employment laws, visit our hiring guide.
What legal requirements exist for employment in South Africa?
Employment contracts
Employers must provide a formal contract that outlines salary, job role, and working conditions. These contracts must adhere to the BCEA and be legally binding. Contracts can be permanent, fixed-term, or project-based, depending on the nature of employment. Any amendments to the contract must be mutually agreed upon and documented.
Payroll and tax contributions
Employers must ensure that payroll taxes, UIF contributions, and other deductions are correctly processed and submitted to the relevant authorities. South Africa follows a Pay As You Earn (PAYE) system, where taxes are deducted directly from employees’ salaries and paid to the South African Revenue Service (SARS). Employers must also contribute towards the Skills Development Levy (SDL), which funds employee training initiatives.
Statutory benefits
Employees in South Africa are entitled to a range of statutory benefits, including paid leave, maternity and paternity leave, and sick leave. Annual leave is generally set at 15 working days per year, while maternity leave extends up to four months. Employers must also provide access to social benefits such as medical aid and pension funds, depending on company policies.
Working hours and overtime
The standard workweek in South Africa is 45 hours, with a daily cap of nine hours for employees working five days per week. Overtime is permitted but must be compensated at a higher pay rate or through additional time off. Employees cannot be forced to work overtime without prior agreement, and there are specific weekend and night shifts restrictions.
Health and safety compliance
Employers must adhere to the Occupational Health and Safety Act to ensure a safe working environment. This includes providing employees with necessary protective equipment, conducting regular workplace safety audits, and ensuring compliance with industry-specific health regulations. Employers are also required to implement policies that prevent workplace discrimination and harassment.
Please note that all these requirements may vary depending on the job type, the employer and individual circumstances.
Why choose Native Teams as your South Africa Employer of Record?
With Native Teams, expanding into South Africa is straightforward. We take care of legal and administrative employment requirements, so you can focus on running your business. Our presence in over 85 countries ensures that you receive expert support tailored to your global expansion strategy.
By handling payroll, contracts, benefits administration, and compliance, we remove the administrative burden from your company, enabling you to focus on strategic growth. Our all-in-one platform provides a streamlined solution for managing your workforce while ensuring full compliance with the South African employment laws.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party entity that legally employs workers on behalf of a company. The EOR takes responsibility for payroll processing, tax withholdings, employment contracts, and benefits administration, allowing businesses to hire employees in foreign markets without establishing a legal entity.
With EOR businesses can achieve a solution for global expansion, ensuring compliance with local labour laws while maintaining full operational control over employees.
What are the costs of using an Employer of Record in South Africa?
The cost of using an EOR in South Africa depends on factors such as the provider you select, the number of employees you plan to hire, and the range of services your business requires.
As a trusted EOR partner supporting global companies in over 85 countries, Native Teams offers a flexible pricing model tailored to your specific needs. To learn more about our EOR pricing, please visit our pricing page.
What is the difference between PEO and EOR?
A Professional Employer Organisation (PEO) and an Employer of Record (EOR) both provide employment solutions, but they differ in their level of responsibility and legal structure.
A PEO acts as a co-employer, meaning that the company and the PEO share employer responsibilities. The business must already have a legal entity in the country where employees are being hired, and while the PEO manages HR functions such as payroll, benefits, and compliance support, the company remains responsible for day-to-day employee management.
In contrast, an EOR serves as the full legal employer of record, taking complete responsibility for payroll, tax compliance, employment contracts, and statutory benefits.
What are the responsibilities of an Employer of Record (EOR)?
An Employer of Record (EOR) is responsible for managing all legal and administrative aspects of employing workers on behalf of a company. This includes handling payroll processing, ensuring that salaries are paid on time and in compliance with local tax laws. An EOR also takes care of tax deductions and social security contributions, ensuring that all statutory payments are correctly calculated and submitted to the relevant authorities.
Additionally, an EOR drafts and manages employment contracts, making sure they comply with local labour laws and protecting both the employer and employees. Other key responsibilities include benefits administration, such as health insurance, pensions, and statutory leave entitlements, as well as ensuring compliance with local employment regulations to mitigate legal risks.
Is using an Employer of Record in South Africa legal?
Yes, using an Employer of Record (EOR) in South Africa is entirely legal. EOR services operate within the framework of South African labour laws, ensuring full compliance with employment regulations, tax obligations, and social security requirements. By acting as the legal employer on behalf of a company, an EOR manages payroll, employment contracts, tax deductions, and statutory benefits while adhering to local employment standards.
Why should I use EOR instead of opening my own company or an office in South Africa?
Expanding into South Africa by establishing a local company or office can be a complex, time-consuming, and costly process. Businesses must navigate legal entity registration, tax compliance, payroll administration, and labour law requirements, all of which demand significant resources and expertise. Setting up a local entity involves obtaining the necessary business licences, registering with the South African Revenue Service (SARS), and managing ongoing compliance with employment laws such as the Basic Conditions of Employment Act (BCEA) and Occupational Health and Safety Act.
By using an Employer of Record (EOR) like Native Teams, companies can bypass these challenges and start hiring in South Africa immediately. An EOR takes on the legal responsibilities of employment, including payroll processing, tax filings, benefits administration, and regulatory compliance, allowing businesses to focus on growth rather than administrative burdens.
Additionally, an EOR provides greater flexibility, enabling businesses to scale their workforce up or down based on market demand without the long-term commitments and costs associated with establishing a local entity. Partnering with an EOR is the most efficient and cost-effective way to access the South African market while ensuring full legal compliance.
How many people can I employ in South Africa?
There are no legal restrictions on the number of employees you can hire in South Africa through an EOR. Whether you need to hire a single employee or scale your workforce significantly, Native Teams provides a flexible solution to meet your employment needs.