Powering Payroll, Compliance & Workforce Management in South Africa

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South Africa at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

South Africa
Work Permits & Visas
  • General Work Visa: For individuals with a job offer in South Africa who meet the role’s minimum education and experience requirements. Employers must prove no suitable South African citizen or permanent resident is available for the position.
  • Critical Skills Work Visa: For applicants with skills on South Africa’s critical skills list, assessed by the relevant professional body. Requires an offer of employment at the time of application.
  • Intra-Company Transfer Visa: For employees transferring to a South African branch of an international company for a limited period, with at least six months’ prior employment at the foreign office.
  • Both General Work and Critical Skills visas are assessed under a points-based framework.
Payroll
  • Payroll Frequency: Weekly, bi-weekly, fortnightly, or monthly; no set pay dates.
  • Income Components: Salaries, wages, bonuses, overtime, allowances, taxable benefits, lump sums, trust income, and directors’ fees.
  • Deductions: Pension/provident/retirement contributions, legal costs, donations, employment-related debts.
  • Employer Contributions: Unemployment insurance, workers’ compensation, and (if applicable) pension/medical aid.
  • Payroll Taxes: Skills Development Levy at 1% of taxable income.
  • Minimum Wage: R28.79/hour for most workers; R15.83/hour for expanded public works.
Employment Contracts
  • Contracts may be fixed-term or indefinite.
  • Probation Period: Not mandatory; typically 3 months, extendable to 6 months.
  • Working Hours: 40–45 hours/week; overtime capped at 10 hours/week (1.5x rate).
  • Sunday/Public Holidays: Paid at 2x normal rate.
  • Notice Period: 1 week (0–6 months), 2 weeks (6–12 months), 4 weeks (12+ months).
  • Termination: Misconduct, incapacity, redundancy/retrenchment; each follows a set procedure.
  • Severance: One week’s pay per completed year of service.
Employee Benefits
  • Social Security: No national social security system; unemployment insurance covers eligible employees.
  • Workers’ Compensation: Government-run insurance; private cover available in construction sector.
  • Private Benefits: Employers may provide medical aid, retirement schemes, and life insurance.
Tax Overview
  • Tax Residency: Resident if ordinarily resident or physically present ≥183 days/year.
  • Tax Year: March 1 – February 28/29.
  • Progressive personal income tax rates apply; employment income is taxable.
Personal Income Tax
South Africa — Personal Income Tax Rates
Taxable Income (R/year) Tax on this Income
0 – 237,100 18% of taxable income
237,101 – 370,500 R42,678 + 26% of taxable income above R237,100
370,501 – 512,800 R77,362 + 31% of taxable income above R370,500
512,801 – 673,000 R121,475 + 36% of taxable income above R512,800
673,001 – 857,900 R179,147 + 39% of taxable income above R673,000
857,901 – 1,817,000 R251,258 + 41% of taxable income above R857,900
1,817,001 and above R644,489 + 45% of taxable income above R1,817,000

Rates apply for the 2025/26 tax year. Does not include rebates or medical tax credits.

Full Country Guide

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South Africa

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South Africa

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South Africa

's laws

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South Africa