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 employer 

Blue Marble has created a cloud-based platform to manage global payroll in 150+ countries. Our customized reporting gives you real-time access to your employee payroll across all countries and currencies. We have a unique hybrid service model with a dedicated US-based team and direct access to in-country experts when questions come up. Simplify your payroll in South Africa and ensure compliance – click here to learn more