Employees in South Africa are protected by the employment legislations set by their government. When onboarding locals in the country, it is important that the employer is knowledgeable of these laws for their employees’ welfare. Below are some of the rules that they must observe for their workforce:
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
Due to the diversity in South Africa, employment contracts must be written in a language that both the employer and employee understands. In the event that both parties have differing language preference, a translation must be prepared. This must also be applied in the event of employment proceedings.
Probation Period
New employees in South Africa are expected to undergo a probation period of up to 3 months.
13th Month Pay
A 13th month pay in South Africa is not mandatory.
Employee Benefits
Below are some of the benefits that South African employees receive upon employment:
- Statutory Leaves .
- Unemployment Funds.
- Healthcare Insurance.
- Retirement Plans and Pension.
- Skills development benefits.
- Occupational Accidents and Diseases benefits
In South Africa, payroll is released monthly and is usually given every 25th day of the month.
The minimum wage in South Africa is ZAR 23.19 per hour.
Employees exceeding the 45 hours of work in a week are paid either 1.5 times the hourly rate or an equivalent amount of time off.
Employer Payroll Cost:
| Type |
Contribution |
| Unemployment Insurance |
1% (capped at ZAR 212,544 annually) |
| Skills Development Levy (SDL) |
0.01 |
Employee Payroll Cost:
| Type |
Contribution |
| Unemployment Insurance |
1% (capped at ZAR 212,544 annually) |
Employee Income Tax
| Income (ZAR) |
Tax amount (ZAR) |
Tax on excess (%) |
| 0 to 226,000 |
0 |
18 |
| 226,001 to 353,100 |
40680 |
26 |
| 353,101 to 488,700 |
73726 |
31 |
| 488,701 to 641,400 |
115762 |
36 |
| 641,401 to 817,600 |
170734 |
39 |
| 817,601 to 1,731,600 |
239452 |
41 |
| 1,731,601 and above |
614192 |
45 |
VAT
The standard rate for VAT in South Africa is 15%.
Termination of employment contracts in South Africa can happen for reasons including the expiration of the contract, completion of the employment task, notification by either party, summary termination due to company breach, mutual agreement, employer insolvency, employee misconduct, and unsatisfactory employee performance.
Notice Period in South Africa is up to one month.
Severance pay
Employers must pay their terminated employees a severance pay equal to one week’s worth of salary for every year of completed service.
Foreigners applying for job positions in South Africa must apply for a work visa to legally work in the country. Below are the different types that expats can apply for:
- General work visa
- Critical skills work visa
- Intra-company transfer work visa
- Corporate visa