- Country Guide
- South Africa
South Africa
Last Update by Federico, 05 Sep 2024
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Exchange Rate
18 Sep 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 597,328 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 |
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
Contract Format
Can be written or verbal in any of the official languages: Afrikaans, English, Ndebele, Northern Sotho, Sotho, Swazi, Tswana, Tsonga, Venda, Xhosa and Zulu
Payroll Currency
ZAR
Probation
No statutory amount, Typical practice is up to 3 months
Contract Period
No minimum duration
Termination
-
Notice during probation for staff and employers:
- 1 week minimum -
Voluntary resignation:
- 1 week, in writing -
Involuntary Termination
- Under 6 months' service: 1 week
- From 6 months-1 year service: 2 weeks
- Over 1 years' service: 4 weeks -
Severance:
- Dismissals due to retrenchment or restructuring
- 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
- https://www.numbeo.com/cost-of-living/in/Cape-Town
- https://www.gov.za/services/uif
- https://www.gov.za/about-sa/public-holidays#2024
- https://www.treasury.gov.za/documents/national%20budget/2024/sars/Budget%202024%20Tax%20guide.pdf
- https://www.gov.za/services/compensation-fund/claim-occupational-injuries-or-disease#:~:text=The%20fund%20pays%20compensation%20to,in%20a%20business%20set%2Dup
- https://www.westerncape.gov.za/general-publication/basic-conditions-employment-act
- https://www.sars.gov.za/tax-rates/employers/subsistence-allowances-and-advances/
- https://www.westerncape.gov.za/service/maternity-and-paternity-leave
- https://www.sars.gov.za/types-of-tax/skills-development-levy/
- chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://smelaboursupport.org.za/wp-content/uploads/2018/05/Section_198A-D_of_the_LRA_Non-standard_employment_Info_Sheet_2018_FINAL.pdf
- chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf
- https://taxbreak.co.za/#:~:text=Individual%20income%20tax%20return%20filing%20dates%20for%202024,electronically%20-%207%20July%20to%2023%20January%202024
- https://smelaboursupport.org.za/wp-content/uploads/2018/05/Section_198A-D_of_the_LRA_Non-standard_employment_Info_Sheet_2018_FINAL.pdf
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Contact UsCountry Guide - South Africa
Last updated: 05 Sep 2024
Exchange Rate
Currency (ZAR)
- 1 CNY = 0.185 ZAR
- 1 USD = 1.32 ZAR
Other currencies can be retrieved via the country guide link above.
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Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
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 597,328 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 |
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
Fixed-Term
Restricted to short term projects, replacing staff on maternity, absent staff or temporary fluctuations in workloads
Probation
No statutory amount
-
Typical practice:
- Up to 3 months
Termination
-
Notice during probation for staff and employers:
- 1 week minimum -
Voluntary resignation:
- 1 week, in writing -
Involuntary Termination
- Under 6 months' service: 1 week
- From 6 months-1 year service: 2 weeks
- Over 1 years' service: 4 weeks -
Severance:
- Contracts exceeding 24 months service- at least 1 week for each year of service
- Staff must receive a certificate of service when leaving
Permanent
Probation
No statutory amount, Typical practice is up to 3 months
Termination
-
Notice during probation for staff and employers:
- 1 week minimum -
Voluntary resignation:
- 1 week, in writing -
Involuntary Termination
- Under 6 months' service: 1 week
- From 6 months-1 year service: 2 weeks
- Over 1 years' service: 4 weeks -
Severance:
- Dismissals due to retrenchment or restructuring
- 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
2024
| Date | Name |
|---|---|
2025
| Date | Name |
|---|---|
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
- https://www.numbeo.com/cost-of-living/in/Cape-Town
- https://www.gov.za/services/uif
- https://www.gov.za/about-sa/public-holidays#2024
- https://www.treasury.gov.za/documents/national%20budget/2024/sars/Budget%202024%20Tax%20guide.pdf
- https://www.gov.za/services/compensation-fund/claim-occupational-injuries-or-disease#:~:text=The%20fund%20pays%20compensation%20to,in%20a%20business%20set%2Dup
- https://www.westerncape.gov.za/general-publication/basic-conditions-employment-act
- https://www.sars.gov.za/tax-rates/employers/subsistence-allowances-and-advances/
- https://www.westerncape.gov.za/service/maternity-and-paternity-leave
- https://www.sars.gov.za/types-of-tax/skills-development-levy/
- chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://smelaboursupport.org.za/wp-content/uploads/2018/05/Section_198A-D_of_the_LRA_Non-standard_employment_Info_Sheet_2018_FINAL.pdf
- chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf
- https://taxbreak.co.za/#:~:text=Individual%20income%20tax%20return%20filing%20dates%20for%202024,electronically%20-%207%20July%20to%2023%20January%202024
- https://smelaboursupport.org.za/wp-content/uploads/2018/05/Section_198A-D_of_the_LRA_Non-standard_employment_Info_Sheet_2018_FINAL.pdf
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000