South Africa
Employ in South Africa without an entity.
A contract under South African labour law, pay in rand, and unemployment insurance, the skills levy and income tax handled every month. One contact and one invoice.
The facts of employing in South Africa.
Paid in rand, every month.
21 consecutive days of annual leave.
In each annual leave cycle.
Income tax from 18% to 45%.
On the rates for the year from 1 March 2026, withheld each month.
A national minimum wage.
ZAR 30.23 an hour from 1 March 2026.
What employing in South Africa involves, in plain words.
Each is handled for everyone you employ through Global Kinect EOR.
- UIFUnemployment insurance
The Unemployment Insurance Fund, from employer and employee alike.
- 1% from the employer and 1% from the employee, on pay up to ZAR 17,712 a month.
- SDLSkills levy
1% of total pay, paid by the employer, where total pay over the next twelve months will exceed ZAR 500,000.
- PAYEIncome tax
Withheld by the employer each month, on the rates for the year from 1 March 2026.
- 18% on the first ZAR 245,100 a year, rising through 26%, 31%, 36%, 39% and 41% to 45% above ZAR 1,878,600.
- Less a primary rebate of ZAR 17,820 a year.
- Leave
21 consecutive days of annual leave in each cycle.
- Sick leave: the days normally worked in six weeks, in each 36-month cycle.
- Parental leave: at least four consecutive months for a single parent or the only parent in work.
- Since a 2025 Constitutional Court ruling, two working parents share four months and ten days between them.
- Ending employment
Notice of a week in the first six months, two weeks to a year, then four weeks.
- Severance on a dismissal for operational reasons: at least a week's pay for each completed year.
- An unfair dismissal can cost up to 12 months' pay.
- Visas
A foreign employee needs a work visa from Home Affairs.
- General work visa: where no South African citizen with the relevant skills is available.
- Critical skills visa: for a role on the current Critical Skills List.
Hiring in South Africa, step by step.
You choose the person
And agree the role and the salary in rand.
The contract is put in place
Under South African labour law, with a work permit where one is needed.
They are paid monthly
In rand, with UIF, the skills levy and income tax handled.
You get one invoice
With every other country you hire in.
Questions about employing in South Africa
What does an employer pay on top of salary in South Africa?
Employers in South Africa pay 1% of pay to the Unemployment Insurance Fund, matching the employee's 1%, on pay up to ZAR 17,712 a month. Where total pay over the next twelve months will exceed ZAR 500,000, they pay the Skills Development Levy at 1% of total pay. They also pay an annual assessment to the Compensation Fund for workplace injury, at a tariff set by industry.
How does parental leave work now?
What visa does a foreign employee need?
Employing in South Africa, worked through in full.
The guide goes further than this page.
- Hiring in South Africa: the work visa, the contract and a salary worked through, step by step
How you hire in South Africa without an entity of your own: the work visa step by step, moving someone already in South Africa, the contract, the employee test, what a salary costs and pays, leave, and what changed this year.
9 min read
