Minimum wage

Contributions & taxes

Employer tax

Total employment cost is 2.00%.

Corporate tax

South Africa has a flat 27% corporate tax rate for all businesses.

Employee tax

The total employee cost is 1.00%.

Income tax

• 1 to 226 000: 18% of taxable income;
• 226,001 to 353,100: 40,680 + 26% of taxable income above 226,000;
• 353,101 to 488 700: 73,726 + 31% of taxable income above 353,100;
• 488,701 to 641,400: 115,762 + 36% of taxable income above 488,700;
• 641,401 to 817,600: 170,734 + 39% of taxable income above 641,400;
• 817,601 to 1,731,600: 239,452 + 41% of taxable income above 817,600;
• 1,731,601 and above: 614,192 + 45% of taxable income above 1,731,600.

To calculate the salary and taxes in South Africa please click here.

Payroll cycle

Typically, the employment contract outlines the payroll cycle and is subject to mutual agreement between the employee and the employer. Payroll processing frequency options include monthly, weekly, and biweekly.

Is there a 13th salary in South Africa?

A 13th-month paycheck is usually paid in December in South Africa.

Labor rules

Probation period rules

The terms of their employment contract often determine the length of an employee’s trial period; however, in South Africa, 3 months is the norm.

Notice period 

In South Africa, a permanent worker’s notice period is calculated as follows: 

• 1 week’s notice: 0 to 6 months of service;
• 2 weeks’ notice: 6 months to 1 year of service;
• 4 weeks’ notice: 1 year to 4 years of service.

Severance pay

In South Africa, severance pay is outlined in the employee’s employment contract or collective bargaining agreement. Employees are entitled to one week of severance pay for every year worked, provided that the termination of employment is not the result of poor performance or misconduct on the part of the employee.

Working hours

In South Africa, the weekly maximum for typical labor is 45 hours. This equates to 9 hours per day for a 5-day workweek and 8 hours per day for more than 5 days per week.

Leave and benefits

Public holidays

There are 12 official national holidays in South Africa:

1. New Year’s Day
2. Human Rights Day
3. Good Friday
4. Family Day
5. Freedom Day
6. International Workers’ Day
7. Youth Day
8. National Women’s Day
9. Heritage Day
10. Day of Reconciliation
11. Christmas Day
12. Day of Goodwill

Sick leave

Sick leave in South Africa is accrued on a three-year cycle and is paid at 100% of the employee’s regular pay rate. In addition, an employee is eligible for one compensated sick day for every 26 days worked during the first six months. 

Beginning on the first day of the seventh month, the worker will receive:

• 5-day work week: 30 days;
• 6–day work week: 36 days;
• Working Monday through Friday and once every two weeks on Saturday: 33 days;
• Employees who work less than 24 hours per month are not eligible for paid sick leave.

Maternity leave & paternity leave

A pregnant employee is entitled to four months of unpaid maternity leave under South African labour legislation. The employee can take a vacation at any time starting four weeks before the due date, but they can’t return to work until 6 weeks have passed since the delivery date. 

In addition, there is no statutory paternity leave in South Africa.

Other leave

Bereavement leave

Employees are entitled to up to 3 days of paid leave if their spouse, life partner, parent, adoptive parent, grandparent, kid, adopted child, grandchild, or sibling passes away.

Family care

When an employee’s child is sick, the employee can take up to three days of paid absence. Workers employed for more than four months and put in at least four days a week are eligible for paid time off.

What are the minimum vacation days?

Employees are entitled to a leave time of at least 21 consecutive days for each completed year of employment (or 1 day for every 17 days worked, or 1 hour for every 17 hours worked).

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration. 

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in South Africa, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in South Africa?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.