South Africa Payroll Outsourcing

Pay Your Talents in South Africa Compliantly

Seeking A Reliable Payroll Partner in South Africa ?

With our South Africa Payroll Outsourcing services, your talents are paid on time and without error! Our team at Africa HR Solutions also provides your company with much-needed guidance to ensure that your operations comply with South Africa’s Labor Code and tax policies. Over the years, we have played a pivotal role in the expansion of over 400 clients across Africa by providing reliable HR and payroll and cross-border payment outsourcing solutions.

South Africa Country Overview

Geographic location: Located at the Southernmost tip of Africa, South Africa is strategically located for a stopover point for shipping and trading routes.

Population: South Africa counts approximately 60,041,996 citizens. The most spoken is Zulu at around 23% of the population actively speaking. Xhosa is the second most spoken language with 16% of South Africa’s citizens. Afrikaans only accounts for around 14% of speakers in the country.

Economy: It boasts one of the most business-friendly environments on the continent. South Africa’s economy largely relies on mining, given its rich supply of gold, platinum, and diamonds. The country represents Africa’s most important economic powerhouse and is full of opportunities for business owners willing to expand on the continent.

Payroll in South Africa - What You Should Know

  • Population: 60,041,996
  • Gross Domestic Product (GDP): $419.95 B
  • GDP Growth (April 2021): 4.9%
  • Inflation, consumer prices: 4.6%
  • Foreign Direct Investment (% of GDP): 0.9%
  • Unemployment Rate: 33.6%
  • Capital: Pretoria (executive), Cape Town (legislative), Bloemfontein (judicial)
  • Currency: South African Rand
  • Languages: Afrikaans, English, Xhosa, Zulu

Employer Contribution

  • 1.00% of the employer’s emoluments must be contributed to social security for the Unemployment Insurance Fund (UIF)
  • Additionally, the employer must contribute to the Compensation Fund payable on an annual remuneration of up to ZAR458,520.

Employee Contribution

  • 1.00% of the employee’s emoluments must be contributed to social security regarding the Unemployment Insurance Fund.
  • Value-added tax (VAT)

    The standard VAT rate is 15% in South Africa. Certain food products and other supplies are zero-rated in the country. Financial services, public transport, and accommodation are generally exempt from VAT.

Paid Time-Off

If the employee works five days a week, they are then entitled to 15 days of paid leave per year. However, best practice sees employees generally receiving to 21 days of paid annual leave.

Sick Leave

According to Section 22(1) to 22(4) of South Africa’s Employment Act, during each 36-month cycle starting from the first day at work, an employee is entitled to a paid sick leave. This should be equivalent to the exact number of days they work in a 6-week period.

If the employee works five days a week, they are then entitled to 30 days of sick leave with pay. If they work for six days a week, the amount is increased to 36 days. An employee may have 10-12 days of paid sick leave per year on average when distributed across 3 years.

Maternity Leave

In South Africa, women are entitled to 4 months of maternity leave. According to South Africa’s law, an employer has no obligation to provide paid maternity leave to their employee. However, the latter is still entitled to four consecutive months of maternity leave.

Paternity Leave

In South Africa, men are entitled to 10 days of parental leave.

Under section 37 of the BCEA, employees in South Africa may provide notice of their resignation/employers may provide notice of termination within the following periods:

  • 1 weeks’ notice, if the employee has been employed for six months or less.
  • 2 weeks’ notice, if the employee has been employed for more than six months but less than one year.
  • 4 weeks’ notice, if an employee has been employed for one year or more.
  • 4 weeks’ notice, if an employee is either a farmworker or a domestic worker who has been employed for more than six months.

A shorter notice period is possible with an agreement from both parties.

In South Africa, the minimum severance pay should be equal to 1 weeks’ pay for each completed year of service.

However, if the specified amount in the employment contract is larger, the employee is then entitled to the agreed amount.

  • New Year’s Day (1st January)
  • Human Rights Day (21st March)
  • Good Friday (10th April)
  • Family Day (13th April)
  • Freedom Day (27th April)
  • International Workers’ Day (1st May)
  • Youth Day (in South Africa) (16th June)
  • National Women’s Day (10th August)
  • Heritage Day (24th September)
  • Day of Reconciliation (16th December)
  • Christmas Day (25th December)
  • Boxing Day (26th December)

South Africa Payroll Done The Easy Way. The Right Way.

12 Years of Experience

Over more than a decade, Africa HR Solutions has become a leading payroll service provider across Africa with a proven track record of success with over 400 clients across many industries.

Bulletproof Compliance

Ensuring your operations are carried out compliantly is a must. From country-specific regulations to government laws, we make sure your company is up to code with Africa's legislation at all times.

+44 Countries in Africa

Operating in more than 44 countries in Africa, our team of experts gathered the required knowledge and local expertise to handle your needs and demands - wherever, whenever.

Single Point of Contact

Avoid unnecessary headaches and mistakes thanks to our centralized services and manage everything from a single database. A single point of contact for all of your needs across the continent.

Maximize your ROI

It is cheaper to let a third-party organization handle your payroll than to do it yourself. By saving on the overall cost of payroll, you can reallocate your budget elsewhere to promote company growth.

Swift Payroll Implementation

With Africa HR Solutions you are one call away from implementing an accurate and timely payroll operation to ensure your talents are paid on time no matter where they are in Africa.

We Can Help. Just Tell Us How!

Related Services

South Africa EOR

Onboard and pay your talents in South Africa without having to set up a legal entity with our extensive Employer of Record solutions.

South Africa PEO

Outsource your payroll and benefits administration to us and get access to best in class advantages for your employees.

South Africa HR Outsourcing

We take care of your HR functions to help you save up on the overall cost and ensure your operations are carried out compliantly.

Countries We Cover

In the last 10 years, the scenario surrounding compliance in African countries has changed dramatically. Africa HR Solutions understands this and has become a major player in the African payroll market.