Unless you speak 11 languages, South Africa can be a challenging place to start or grow a business. There are 3 capital cities and the main economic sources including tourism, mining and manufacturing. There are defined employment and payroll regulations needed to maintain compliance.
Payroll and Tax Considerations
- The national minimum wage is ZAR 20.76
- Overtime is limited to 3 hours a day and 10 hours a week. Employees receive at least 150% of regular hourly wage, but employees earning more than ZAR 205,433 are not eligible for overtime pay
- Employers must pay severance if an employee is terminated due to economic, technological, or structural needs
- Severance pay is 1 week’s salary for every year of continuous service
- Residents are required to pay taxes on global income
- South Africa has a progressive tax that ranges from 18 – 45%
HR and Statutory Requirements
- Employees are entitled to 21 consecutive days of annual leave after one year of continuous service
- Annual leave cannot be accumulated from one year to the next. An employer must ensure employees take annual leave within 6 months after the end of the annual leave cycle. An employee must be paid for unused annual leave at termination
- Employers are required to grant employees 6 weeks of paid sick leave in each 36-month sick leave cycle of employment with the same employerÂ
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