South Africa EOR & PEO

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Horizons provides compliance solutions to ensure your business in South Africa operates in line with South Africa labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, South Africa in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as an Andorra Employer of Record, absorb all local employer liabilities. Partnering with our South Africa EOR is the quickest and most cost-effective way to enter the South Africa market.

Note, a South Africa Employer of Record is also known as a South Africa Professional Employer Organization (PEO).

Facts & Stats

stay compliant with South Africa labor laws

Employment Laws

Employment contracts in South Africa

Formal employment contracts are legally required in South Africa, so you should always provide one in writing for your employees. Every contract should include the details of employment, such as salary/wage, working hours, benefits, and so on, should be written in one of South Africa’s official languages, and should use the South African rand as currency.

From our experience, we always suggest to go with an open-ended contract when hiring in South Africa. It's the most common option and has flexible terms in case you wish to stop the engagement with the employee.

Clare Van RensburgAccount Manager from the Horizons Johannesburg team

Fixed-term

Indefinite

Working hours in South Africa

The standard working week in South Africa is 45 hours spread over five work days. Beyond this, overtime rates should be paid. Overtime is limited to ten hours per week and must be paid at 1.5 to 2 times the normal pay rate, depending on when the work is done.

National holidays in South Africa

Most employees in South Africa are given the day off for several public holidays every year. The following are the most common:

Holiday Schedule in South Africa [2024]

South Africa has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan Monday	New Year’s Day
2 Jan Tuesday	Day off for New Year’s Day
21 Mar Thursday	Human Rights Day
29 Mar Friday	Good Friday
1 Apr Monday	Family Day
27 Apr Saturday	Freedom Day
1 May Wednesday	Workers’ Day
16 Jun Sunday	Youth Day
9 Aug Friday	National Women’s Day
24 Sep Tuesday	Heritage Day
25 Sep Wednesday	Day off for Heritage Day
16 Dec Monday	Day of Reconciliation
25 Dec Wednesday	Christmas Day
26 Dec Thursday	Day of Goodwill

Vacation leave in South Africa

Employees in South Africa are entitled to 15 days of paid vacation leave every year. They can also take up to three days of family leave for special circumstances such as caring for a sick child or the death of a family member.

Sick leave in South Africa

Sick leave works on a 36-month cycle in South Africa, with employees entitled to 30 days of paid sick leave every cycle. For the first six months with a company, employees are only entitled to one day of sick leave for every 26 days of work.

If an employee is absent through work-related sickness or injury, for more than four days, the employer must pay at least 75% of normal pay for the first three months. Beyond this, the state covers compensation.

Maternity and paternity leave in South Africa

Female employees in South Africa can take a minimum of four months of paid maternity leave. The leave can start one month before the birth and must stay off work for at least six weeks after, in most cases. The employee’s compensation is paid by the state.

There is no legal requirement to provide paternity leave.

Employee severance and terminations in South Africa

There is no mandatory maximum for probation periods in South Africa, but they should be reasonable in length.

The notice periods required for terminations vary depending on the length of service. For up to six months of service, the notice period is one week. For between six and 12 months of service, the notice period is two weeks, and for beyond 12 months, the notice period is four weeks.

Some employees may be entitled to severance pay, for example when dismissed for economic reasons, at a rate of one week of pay for every year of service.

Tax laws in South Africa

Employers and employees must pay toward social funds in South Africa. For the Unemployment Insurance Fund, employees pay 1% of salaries and employers pay roughly 8.5%.

For the workplace insurance fund (COIDA), employers must pay between 0.11% and 8.26%, depending on their industry and the perceived level of risk to employees.

Income tax in South Africa is progressive, and rates range from 18% to 45% depending on income level.

The corporate tax rate in South Africa is a flat 28% for most companies.

Health insurance in South Africa

South Africa has both public and private healthcare, so it is not necessary for employers to offer private insurance but many choose to.

hassle-free South Africa compensation & benefits

Compensation & Benefits

Compensation laws in South Africa

As of 2024, the minimum wage for most workers in South Africa is ZAR 25.42 per hour.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Benefit management in South Africa

Setting up your South African benefits system as a foreign employer can be difficult. The laws are complicated, bureaucratic procedures can be slow, and legislation can change regularly, all of which can make it a very time-consuming process.

Outsourcing your benefit management process can save you time and money, and ensure you are fully compliant with the relevant laws. Horizons can simplify your South African benefits management, with our South Africa experts setting up and managing everything for you to help you focus on a successful expansion operation.

South Africa Employer Of Record Peo

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Hire in South Africa

Employment Laws

Working hours in South Africa

National holidays in South Africa

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

What is the difference between a South Africa PEO and a South Africa EOR?

Generally speaking, the terms “South Africa PEO” and South Africa EOR” are used interchangeably.

Can an EOR in South Africa hire both local and foreign nationals to work in South Africa?

An EOR in South Africa can feasibly hire both local and foreign nationals to work in South Africa.

However, the ability of Horizons to sponsor your foreign national employee in South Africa may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' South Africa EOR service take to hire an employee?

In most cases, Horizons’ South Africa EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in South Africa.

Is it possible to get a work visa in South Africa?

It is possible to get a work visa in South Africa. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in South Africa are limited, however—get started today to secure your employees’ visa spot.

South Africa EOR & PEO

Start hiring in South Africa

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in South Africa

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stay compliant with South Africa labor laws

Employment Laws

Employment contracts in South Africa

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in South Africa

National holidays in South Africa

Vacation leave in South Africa

Sick leave in South Africa

Maternity and paternity leave in South Africa

Employee severance and terminations in South Africa

Tax laws in South Africa

Health insurance in South Africa

hassle-free South Africa compensation & benefits

Compensation & Benefits

Compensation laws in South Africa

Benefit management in South Africa

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