South Africa

Last Update by Katie, 31 May 2024

You must log in to be able to download this document

Exchange Rate

13 Jun 2024

 

Cost of Living

Indicative value for a working adult in a city: Cape Town

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (ZAR)
McDonalds Set Meal 90
Monthly Train and Bus Tickets 750
3 Bedrooms Rental (City Center) 26,241
3 Bedrooms Rental (Outskirt) 16,600

Current Inflation Rate

5.1%

Wage

Minimum Wages

  • 27.58 per hour from February 2024

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (ZAR)
Entry-Level
Fresh Graduate
9,000
Mid-Level
5 Years
20,000
Experienced & Managerial Level
10 Years
28,000
Specialized & Senior-Level
15 Years
50,000+

Annual Salary Growth

6.1%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
Unemployment Insurance Fund (UIF) 1%
Earnings ceiling capped at 212,544 R per year
1%
Earnings ceiling capped at 212,544 per year
All staff
Skills Development Levy (SDL) 1% - All employers with salary bill of over 500,000 R oer year
Workers Compensation Fund (OID) Variable and based on earnings/field of work/risks
Capped at 568, 959 R per year
- Workers, earnings, field of work and risks associated with roles
Retirement Annuity (RA) 7.5%
Capped at 350,000 R per year
7.5% of gross income All staff

Other Benefit

Other common employment benefits in South Africa include:

  • Work from home Allowance: 6 R per day
  • 13th-month salary: Customary and paid in December of each year

Income Tax

Residents

  • Financial Year: 1st April- 31st March
    Filing start date: Online starting on 7th July

Country Level

Taxable Income Rate
1 – 237,100 18%
237,101 – 370,500 42,678 + 26% above 237,100
370,501 – 512,800 77,362 + 31% above 370,500
512,801 – 673,000 121,475 + 36% above 512,800
673,001 – 857,900 179,147 + 39% above 673,000
857,901 – 1,817,000 251,258 + 41% above 857,900
1,817,001+ 644,489 + 45% above 1,817,000

Non-residents

  • Taxed the same as residents but on income from any South African source

Working Hours

Statutory

45 hours
Up to 5 days a week : 9 hours a day
over 5 days a week: 8 hours a day

Typical practice

45 hours
Monday-Saturday

Overtime

Maximum overtime is up to 12 hours per day or 10 hours per week

  • 150% for employees earning below the annual threshold of 205,433.30 R on weekdays
  • Weekend work 200% pay for each hour worked
  • Employees who earn over the annual threshold of 205,433.30 R are not entitled to overtime compensation

Employment Contract

Permanent

Probation

No statutory amount

  • Typical practice:
    - Up to 3 months

Termination

Notice periods are the same for the employers and employees.

  • Notice during probation:
    - 1 week minimum
  • Notice after probation:
    - Under 6 months' service: 1 week
    - From 6 months-1 year service: 2 weeks
    - 1+ years' service: 4 weeks
  • Severance:
    - Paid for dismissals due to retrenchment or restructuring
    - At least 1 week's pay for every year of continuous service
    - Staff must receive a certificate of service when leaving a job

Public Holiday

14 days

Country Level

Date Name
01 Jan New Year's Day
21 Mar Human Rights Day
29 Mar Good Friday
01 Apr Family Day
27 Apr Freedom Day
01 May Workers' Day
29 May General Elections
16 Jun - 17 Jun Youth Day
09 Aug National Women's Day
24 Sep Heritage Day
16 Dec Day of Reconciliation
25 Dec Christmas Day
26 Dec Day of Goodwill

Leave

Leave Type Entitlement Notes
Annual Leave 21 working days
Staff are paid for public holidays
Staff that work over 24 hours per month
Maternity Leave 4 months
Paid by UIF
Expectant mothers that workover 24 hours per month
Paternity Leave 10 working days
paid by UIF
Expectant fathers
Parental Leave 10 consecutive weeks
paid by UIF
Parents, fathers, adopting parents and surrogates with 13 weeks continuous service
Adoption Leave 10 working days
paid by UIF
Parents adopting a child
Carers Leave 1 week unpaid All staff
Family Responsibility Leave 3 working days / year
paid by employer
staff with over 4 months' service
Sick Leave Up to 6 weeks during a 36-month cycle Staff with 26 days continuous service with the same employer working over ;24 hours per month

Reference

Ready To Expand in South Africa?

Have any questions? We’d love to hear from you

Contact Us