01
How does salary cost in South Africa compare to Europe and North America?
South African labor costs are on average 30%+ less than in Europe and North America.
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FAQ’s
Got questions about EOR in South Africa? Browse our FAQs for clear answers on hiring, contracts, tax compliance, and managing remote teams.
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Practical guidance on South African employment, payroll, benefits and compliance.
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Frequently Asked Questions
– Let’s cover the FAQs you might have.
Our FAQ’s
02
Who can be employed in South Africa and what proof do they have to provide (ID, work permit, etc)?
Employees must be South African citizens or permanent residents of an appropriate age who have a barcoded identification document (ID). Anyone who is not a citizen or a permanent resident of South Africa needs a South African work visa in order to work in the country. The proof required is a valid barcoded South African ID or a work visa that is specifically issued for the employment with Employer of Record South Africa.
03
How long does it take to onboard and employee?
Onboarding takes 2 business days after the client signed the Employer of Record South Africa services agreement and paid the deposit.
04
Can you offer permanent and fixed term contracts in SA?
Yes, we have contract templates for both options.
05
Under which circumstances can we offer a fixed term contract?
A fixed term contract means a contract of employment that terminates on: the occurrence of a specified event; the completion of a specified task or project; a fixed date (other than an employee’s normal or agreed retirement age).
06
How often are employees paid?
Normally monthly Bi-weekly and weekly for blue collar workers are also acceptable.
07
On which day are employees paid?
Normally on the 25th of a month but employers can also contract to pay on another date (e.g. last working day of the month)
08
How long is the probation period?
Standard practice in South Africa is three months. It is possible to use a longer probation period provided the length is deemed reasonable given the circumstances of the job.
09
What are the normal working hours?
Employees are paid for an average of 40 hours per week from Monday to Friday. Working hours are from 08h00 to 17h00 with an hour unpaid meal break per day, i.e. 8 hours paid plus 1 hour unpaid.
10
Should we pay employees for working overtime?
Only employees that earn less than the BCEA earnings threshold (currently R21 197.63 per month) are entitled to overtime payment. Overtime must be at 1.5 times the normal wage rate except for Sunday work and work on public holidays, which must be remunerated at twice the normal wage rate.
11
What is the minimum wage?
The minimum wage rate is R27.58 per hour (approximately R 4780.53 per month)
12
Are there mandatory employee deductions apart from income tax?
Unemployment Insurance Fund (UIF): 1% of Gross Salary up to a ceiling of R17 712 per month, i.e. the maximum UIF contribution is R 177.12 per month.
13
Is the employer obliged to provide health insurance?
No it is not mandatory for an employer to provide health insurance.
14
How do you keep track of leave?
Leave balances and applications are tracked on the Employer of Record South Africa on-line platform.
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