SOUTH AFRICA PEO & EOR
Hire in South Africa without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in South Africa today with Gibson Watts Global.
DID YOU KNOW
- South Africa has 3 capital cities, Cape Town (Legislative), Pretoria (Administrative), and Bloemfontein (Judicial).
- South African employees work an average of 43.3 hours per week, and it is ranked the fifth hardest working country in the world.
- South Africa is the world’s largest producer of platinum group metals, gold and chromium.
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Working in South Africa
Financial Year Dates
South Africa’s financial Tax year runs from 1st March – 28th February.
Minimum Wage
From 1st March 2024, a new minimum wage for each ordinary hour worked increased from R25,42 to R27,58.
Standard working hours
In South Africa, the maximum working hours a week is 45 hours. Consisting of 9 hours per day for employees working 5 days a week, and 8 hours per day for employees working more than 5 days.
Overtime
All overtime is voluntary and must be agreed between both the employer and employee. Maximum allowed overtime is 3 hours per day and a total of 10 hours per week. Overtime is paid at 1.5 times of the employee’s standard wage, except for Public Holidays and Sundays, which are paid at double rate.
Holiday Allowance
21 days’ annual leave is granted to employees paid at their normal salary rate.
Sick Leave
South African employees are entitled to 6 weeks paid sick leave in a 3-year period, except for any employees within their first 6 months of employment who are entitled to 1 day’s sick leave for every 26 days worked.
Maternity & Paternity Leave
Pregnant employees are entitled to 4 months of maternity leave. Generally, this is not paid at full pay, but instead maternity benefits are eligible from the Unemployment Insurance Fund (UIF).
Paternity leave entitles fathers to 10 days of paid leave following the birth of a child.
Public Holiday
- New Year’s Day
- Human Rights Day
- Good Friday
- Family Day
- Freedom Day
- Workers Day
- Youth Day
- National Women’s Day
- Heritage Day
- Day of Reconciliation
- Christmas Day
- Day of Goodwill
Social Contributions
Income Tax
Taxable income (R) | Rates of tax |
0 – 237,100 | 18% of taxable income |
237,101 – 370,500 | 42,678 + 26% of taxable income above 237,100 |
370,501 – 512,800 | 77,362 + 31% of taxable income above 370,500 |
512,801 – 673,000 | 121,475 + 36% of taxable income above 512,800 |
673,001 – 857,900 | 179,147 + 39% of taxable income above 673,000 |
857,901 – 1,817,000 | 251,258 + 41% of taxable income above 857,900 |
1,817,001 and above | 644,489 + 45% of taxable income above 1,817,000 |
Health Care
Healthcare in South Africa is administered by the Department of Health. Most of the population access public health care with only the wealthiest residents accessing private health care.
Visas
Non-citizens and non-permanent residents who want to work in South Africa must obtain a work visa. There are four types of work visas:
- General Work – the most common type of visa granted, covering the majority of applications and lasting for 5 years. All applicants must have a signed employment contract before a general work visa is granted.
- Critical Skills – for any workers that the South African Government deem as critical. An employment contract is not needed prior to granting, however you do need to provide proof of qualifications. Lasts for 5 years.
- Intra-Company Transfer – multinational company’s employees can relocate to their company’s South African branch provided they have worked for a minimum of 6 months in their home country. This type of visa is valid for 4 years.
- Corporate Visa – this visa is for anyone who wants to start a business in South Africa. Upon application you must provide a business plan, proof of company law compliance and have at least 60% of the workforce of South African nationality.
“A South African EOR provider can also provide guidance on this process. An EOR can provide a payroll solution in South Africa, so that workers can easily set up in South Africa and businesses can easily place workers in-country.”
13th Salary
There is no legislation relating to 13th month pay in South Africa. Some companies, however, offer a 13th month pay as part of their employee benefits package. These payments are typically paid at the end of the year as is discretionary.
Cultural Information
South Africa is a country with linguistic and religious diversity. While English serves as the primary language, reflecting its colonial history, South Africa boasts a rich tapestry of languages, including Afrikaans, Zulu, and many more.
This linguistic variety reflects the multicultural nature of the nation. In terms of religion, Christianity holds the majority in South Africa, with over 80% of the population identifying themselves as Christian. The Christian faith plays a significant role in the cultural fabric of the country, shaping traditions, values, and social norms.
However, it’s important to note that South Africa is also home to followers of other religions, including Islam, Hinduism, and traditional indigenous beliefs, showcasing the country’s religious pluralism and tolerance.