Hire employees in South Africa, hassle-free

With Deel, your business can easily hire employees in South Africa. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

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Employee - South Africa

Hire employees in South Africa No entity needed.

Usually, to hire in South Africa,  your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months. 

South Africa also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in South Africa quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.

All the necessary benefits for South Africa built right in

Deel allows you to provide localized benefits for employees in South Africa within minutes. All in one manageable online dashboard.

  • Worker Compensation Insurance
  • Unemployment Insurance
  • Professional Training

Contents


    Speak to our team about how to compliantly hire in South africa

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    Quick Overview

    Currency: South African Rand (ZAR)

    Capital: Cape Town, Pretoria & Bloemfontein

    Official language: English, Afrikaans & multiple others.

    Payroll Cycle: Monthly

    Statutory Holidays

    Paid Time Off

    In South Africa, the minimum is 3 weeks of paid annual leave.

    Public Holidays

    There are 12 Public Holidays among which you will find:

    • New Year’s day
    • Good Friday
    • Boxing Day
    • Freedom Day
    • Christmas Day

    General Taxation

    Individual Income Tax

    The individual income tax ranges from 18% to 45% depends on many variables, such as marital status, level of income, etc.

    Employer Cost

    Approximately, 2% of employee salary

    Additional information

    Probation Period

    The maximum probation period is 6 months.

    Minimum Wage Requirements

    The minimum wage is ZAR 21,69 per hour.

    Maximum working hours and overtime

    Normal working hours over a five-day period are 45 hours a week and 9 hours per day.

    Bonus and expense payments

    Christmas bonuses or 13th salaries are generally paid in December

    Parental Leave

    Employees are given 2 days per childbirth paid by the employer

    • Maternity Leave: employees are entitled to 4 consecutive months of unpaid maternity leave in the event of childbirth, which may start any time from four weeks before the expected date of birth. Many employers provide partial payment as a contractual benefit to their employees. The employee is not permitted to work for at least six weeks after giving birth unless she is declared fit to do so by a medical practitioner or midwife.
    • Paternity Leave: There is no specific paternity leave, however family responsibility leave of 3 days per year (non-cumulative) can be used in respect of the birth of illness of a child, or as contractually agreed.

    Sick Leave

    An employee are entitled to 30 days’ paid sick leave every three years for someone on a five-day week and 36 days’ for a six-day week. However, up to 6 months of employment, the employee is limited to 1 day’s paid sick leave for every 26 days worked.

    Whilst on paid sick leave, employees are entitled to receive their normal pay from the employer, on the usual date their salary is paid.

    Sick leave does not accrue on an incremental basis, so an employee could use up their entitlement during the first year of the three-year cycle. Should this happen, the employer is not under the obligation to pay further days of absence due to sickness.

    Termination requirements for employees in

    South Africa does not allow at-will termination of employment for employers; contracts may be terminated by mutual agreement or unilaterally for due cause (serious cause, unfit for the role, extinction of the role). Legislation requires a written notification to the employee to be dismissed.

    Additional severance pay is due in the case of an operational dismissal/redundancy. It is equivalent to one week’s remuneration per each year of service completed. Any non taken holidays must be paid upon termination.

    Notice Period

    The notice period is based on the length of the labor relationship:

    • Up to 6 months of employment - 1 week's notice
    • Up to 1 year of employment - 2 weeks' notice
    • More than 1 year of employment - 4 weeks' notice

    Payment in lieu of notice is permitted. An employer may not allow or require an employee to take annual leave during the notice period.

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    Dec 3, 2020
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