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How To Hire New Remote Employees | South Africa

Hire employees in

South Africa

, easily

Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

South Africa

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
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Country flag

How To Hire New Remote Employees | South Africa

Hire employees in

South Africa

, easily

   Whether you're looking for an independent contractor, a remote team member, or a full-time employee in

South Africa

, Workpay can help. Say goodbye to worrying about local laws, complex tax systems or managing international payroll. We take care of it all in over 50 countries.

Book a discovery call
Hire employees in
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, hassle-free

With Workpay, your business can easily hire employees in

South Africa

.
No more worrying about local laws, complex tax systems or
managing international payroll. Workpay takes care of everything
in 150+ countries.

Book a discovery call
capital city
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currency
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language spoken
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payroll frequency
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employer taxes
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vat - standard rate
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cost of living index
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gdp - real growth rate
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termination process
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employee protections
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Overview

In the third quarter of 2021, employment in the formal non-agricultural industry grew by 52 000, bringing the total number of people working in the formal non-agricultural sector in South Africa to roughly 9.62 million. Additionally, the formal sector jobs increased by 54 000 year on year, according to a study released by Statistics South Africa's (Stats SA),  Quarter-on-quarter, total employment rose by 52 000 (0.5%), from 9 568 000 in June 2021 to 9 620 000 in September 2021. The rise was attributed to job increases in the following industries: community services (63 000 jobs, or 2.3 percent), mining (7 000 jobs, or 1.5 percent), and transportation (7 000 jobs, or 1.5 percent) (1 000 or 0.2 percent). The power industry did not experience any job increases but trade (-13 000 or -0.6%), business services (-3 000 or -0.1%), manufacturing (-2 000 or -0.2%), and construction (-2 000 or -0.2%). (-1 000 or -0.2 percent) reported job decreases. Overall, between September 2020 and September 2021, the total employment in the country increased by 56 000 (0.6%).

capital city
Cape town
currency
South African Rand(ZAR)
language spoken
11 Official Languages
payroll frequency
Monthly, bi- monthly and weekly
employer taxes
7.5% to 15%
vat - standard rate
15%
cost of living index
R8,000 (low)
gdp - real growth rate
2.16%
termination process
Varies
employee protections
Moderate

Public Holidays

DATE
HOLIDAY NAME

1 January

21 March

7 April 

10 April 

27 April 

1 May 

16 June

9 August

24 September

16 December

25 December

26 December

New Year's Day

Human Rights Day

Good Friday

Family Day

Freedom Day

International Workers' Day

Youth Day (in South Africa)

National Women's Day

Heritage Day

Day of Reconciliation

Christmas Day

Day of Goodwill

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Minimum wage

The minimum wage for domestic workers is R21.69 per hour, R173.52 per day, R867.60 per week, and R3470.4 per month. However, the Minister of Employment and Labour announced that the national minimum wage for each regular hour worked will be increased from R21.69 to R23.19 effective from March 1, 2022. The new regulation applies to employees who work eight hours a day, five days a week. 

This is some text inside of a div block.

Payroll cycle

South Africa does not have a defined payroll cycle but it is usually specified in the employment contract, agreed upon by the employee and employer. Payroll might be processed monthly, weekly, or bi-weekly.

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Taxation

All individuals are taxed at the same rates. The rates for the 2022-23 tax year are presented in the following table.

Income Tax

Taxable Income Tax on Lower Amount ZAR Rate on Excess %
Exceeding ZAR Not Exceeding ZAR
0 226,000 0 18
226,000 353,100 40,680 26
353,100 488,700 73,726 31
488,700 641,400 115,762 36
641,400 817,600 170,734 39
817,600 1,731,600 239,452 41
1,731,100 _ 614,192 45


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Leaves

Annual Leave 

Every employee is entitled to 21 consecutive days of paid yearly leave. If the person works a five-day week, they are entitled to 15 working days a year, and 18 working days a year if the employee works a six-day week.

Maternity Leave 

A pregnant woman has the right to four months of maternity leave but it is unpaid unless the employee has been contributing to the Unemployment Insurance Funds (UIF).  Maternity leave may commence four weeks before the baby's delivery but it may also be taken early if the woman's medical condition prevents her from working. After delivery, the employee is required to take six weeks off. If the employee has been contributing to UIF, they are eligible for a maternity benefit of up to 60% of their remuneration, depending on their income level. Benefits are payable for a maximum of 121 days.

Paternity Leave 

After the birth of their child, South African male employees are entitled to 10 days of paternity leave.

Adoption Leave of Absence

A single adoptive parent is entitled to 10 weeks of consecutive leave. If there are two adoptive parents, only one is entitled to the 10 weeks of leave while the other adoptive parent is entitled to 10 consecutive days of conventional parental leave

Sick Leave 

An employee is entitled to paid sick leave after every 36 months beginning on the first day of work and it should be the precise amount of days they typically work in a regular six-week period. Therefore, if an employee works five days a week, they are entitled to 30 days of paid sick leave and 36 days if they work six days a week. On average, an employee may have 10 to 12 days of paid sick leave a year spread out across three years.

However, during the first six months of employment, employees are only entitled to one day of paid sick leave for every 26 days worked. 

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Termination process

Termination 

Employment law does not recognize the concept of dismissing an employee's employment "without cause" or "at will," and when ending a contract, the employer is required to act equitably in both substantive and procedural terms.

Notice Period 

All employers must give a notice of termination except in material breach of the employment contract. The notice period depends on the length of service as follows: 

  • One week if the employee has worked in the company for six months or less; 
  • Two weeks if the employee has worked in the company for more than six months but less than a year.
  • Four weeks if the employee has worked in the company for a year or more.

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Heading

Hire employees in

South Africa

, hassle-free

With Workpay, your business can easily hire employees in

South Africa

. No more worrying about local laws, complex tax systems or managing international payroll. Workpay takes care of everything in 50+ countries.

Book a discovery call
country featured image
capital city
Cape town
currency
South African Rand(ZAR)
language spoken
11 Official Languages
payroll frequency
Monthly, bi- monthly and weekly
employer taxes
7.5% to 15%
vat - standard rate
15%
cost of living index
R8,000 (low)
gdp - real growth rate
2.16%
termination process
Varies
employee protections
Moderate

Overview

In the third quarter of 2021, employment in the formal non-agricultural industry grew by 52 000, bringing the total number of people working in the formal non-agricultural sector in South Africa to roughly 9.62 million. Additionally, the formal sector jobs increased by 54 000 year on year, according to a study released by Statistics South Africa's (Stats SA),  Quarter-on-quarter, total employment rose by 52 000 (0.5%), from 9 568 000 in June 2021 to 9 620 000 in September 2021. The rise was attributed to job increases in the following industries: community services (63 000 jobs, or 2.3 percent), mining (7 000 jobs, or 1.5 percent), and transportation (7 000 jobs, or 1.5 percent) (1 000 or 0.2 percent). The power industry did not experience any job increases but trade (-13 000 or -0.6%), business services (-3 000 or -0.1%), manufacturing (-2 000 or -0.2%), and construction (-2 000 or -0.2%). (-1 000 or -0.2 percent) reported job decreases. Overall, between September 2020 and September 2021, the total employment in the country increased by 56 000 (0.6%).

Public Holidays

1 January

21 March

7 April 

10 April 

27 April 

1 May 

16 June

9 August

24 September

16 December

25 December

26 December

New Year's Day

Human Rights Day

Good Friday

Family Day

Freedom Day

International Workers' Day

Youth Day (in South Africa)

National Women's Day

Heritage Day

Day of Reconciliation

Christmas Day

Day of Goodwill

Minimum wage

The minimum wage for domestic workers is R21.69 per hour, R173.52 per day, R867.60 per week, and R3470.4 per month. However, the Minister of Employment and Labour announced that the national minimum wage for each regular hour worked will be increased from R21.69 to R23.19 effective from March 1, 2022. The new regulation applies to employees who work eight hours a day, five days a week. 

Payroll cycle

South Africa does not have a defined payroll cycle but it is usually specified in the employment contract, agreed upon by the employee and employer. Payroll might be processed monthly, weekly, or bi-weekly.

Taxation

All individuals are taxed at the same rates. The rates for the 2022-23 tax year are presented in the following table.

Income Tax

Taxable Income Tax on Lower Amount ZAR Rate on Excess %
Exceeding ZAR Not Exceeding ZAR
0 226,000 0 18
226,000 353,100 40,680 26
353,100 488,700 73,726 31
488,700 641,400 115,762 36
641,400 817,600 170,734 39
817,600 1,731,600 239,452 41
1,731,100 _ 614,192 45


Leaves

Annual Leave 

Every employee is entitled to 21 consecutive days of paid yearly leave. If the person works a five-day week, they are entitled to 15 working days a year, and 18 working days a year if the employee works a six-day week.

Maternity Leave 

A pregnant woman has the right to four months of maternity leave but it is unpaid unless the employee has been contributing to the Unemployment Insurance Funds (UIF).  Maternity leave may commence four weeks before the baby's delivery but it may also be taken early if the woman's medical condition prevents her from working. After delivery, the employee is required to take six weeks off. If the employee has been contributing to UIF, they are eligible for a maternity benefit of up to 60% of their remuneration, depending on their income level. Benefits are payable for a maximum of 121 days.

Paternity Leave 

After the birth of their child, South African male employees are entitled to 10 days of paternity leave.

Adoption Leave of Absence

A single adoptive parent is entitled to 10 weeks of consecutive leave. If there are two adoptive parents, only one is entitled to the 10 weeks of leave while the other adoptive parent is entitled to 10 consecutive days of conventional parental leave

Sick Leave 

An employee is entitled to paid sick leave after every 36 months beginning on the first day of work and it should be the precise amount of days they typically work in a regular six-week period. Therefore, if an employee works five days a week, they are entitled to 30 days of paid sick leave and 36 days if they work six days a week. On average, an employee may have 10 to 12 days of paid sick leave a year spread out across three years.

However, during the first six months of employment, employees are only entitled to one day of paid sick leave for every 26 days worked. 

Termination process

Termination 

Employment law does not recognize the concept of dismissing an employee's employment "without cause" or "at will," and when ending a contract, the employer is required to act equitably in both substantive and procedural terms.

Notice Period 

All employers must give a notice of termination except in material breach of the employment contract. The notice period depends on the length of service as follows: 

  • One week if the employee has worked in the company for six months or less; 
  • Two weeks if the employee has worked in the company for more than six months but less than a year.
  • Four weeks if the employee has worked in the company for a year or more.

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