Employer Of Record in South Africa

We make it easy and painless to expand your business into South Africa. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into South Africa Compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in South Africa

As your EOR in South Africa we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in South Africa provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.

Expand to South Africa with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in South Africa being sure that your staff will be hired in compliance with labor and tax regulations.

Table of Contents

Quick Facts

South African Rand (ZAR)

Pretoria, Bloemfontein and Cape Town

Payroll Cycle:

English, Afrikaans & multiple others

South Africa Country Facts

Diversity is a prominent feature in South Africa, and it has 11 languages. South Africa has made improvements to the wellbeing of citizens since its transition to democracy in the mid-1990s, although inequality still exists. Located on the southernmost of the African continent South Africa is the economic superpower, the main center of economic activity and development. South Africa’s coastlines border the Indian Ocean to the southeast and the Atlantic Ocean to the southwest.

The Economy

South Africa is a middle-income market with many natural resources; it has a well-developed financial, legal, communication, energy, and transport sectors; and a stock exchange that is in the top 20 in the world and Africa’s largest.

The Importance of Small and Medium-sized Companies

Small and Medium businesses in South Africa make up 91% of all business, and together they provide employment for 60% of the labor force making them an important part of South Africa’s economy.

Population Characteristics

South Africa is a country of approximately 61 million people. The literacy rate is 94.3% and state spending on education is the largest item in South Africa’s national budget.

Economic Opportunities

With a large and quickly expanding economy, South Africa offers increasing business opportunities for international companies. The nation’s growing middle class population and developed financial industry and business infrastructure make it an appealing location for a global business.

Key Sectors of the National Economy

The top sectors of the countries economy are:

  • Food processing
  • Vehicle manufacturing
  • Energy
  • Telecommunication
  • Textiles
  • Agriculture
  • Fisheries
  • Mining

Human Talent
South Africa’s competitive wage rates, high English proficiency and advanced skill sets make it attractive to foreign employers. It also shares a European time-zone. These factors may help to stem the tide of emigration, and are already attracting expats back to South Africa.

Prominent Cities for Business

Pretoria is the executive capital of South Africa. But Johannesburg is the largest urban area in the country and a center of commerce.

Durban, a port on the Indian Ocean, is a major industrial center. Both East London and Port Elizabeth on the country’s southern coast, are important commercial, industrial, and cultural cities.

Technological Ecosystem

South Africa has the third largest economy and is the most industrialized, diversified and techno advanced, economy in Africa.

Facilities for Foreign Investment

The leaders in South Africa encourage foreign investment, and South Africa has progressed well with the dismantling of its previous economic system, which was based on import substitution, anti-competition measures, subsidies and high tariffs and a lot of government intervention.

Business Culture in South Africa

  • No Rush
    Negotiations move rather slowly in South Africa and should be approached with the attitude of working
    toward a mutually beneficial agreement.
  • Don’t Show Empty-Handed
    Even if the relationship is strictly business, if invited to someone’s home, bringing a gift such as a bottle
    of South African wine, flowers or chocolates are appropriate.
  • Build Trust
    South African business culture relies heavily on trust so whenever possible schedule face-to-face meetings to discuss business. Maintain eye contact when you shake hands.

South Africa Gastronomy: regional and traditional cuisines

South African cuisine is a rainbow of flavors developed in the country or borrowed and tweaked from others around the world.

Bobotie is a ground meat with medium heat curry and other spices, topped with an egg and milk mixture, most like to add raisins.

A popular snack especially for watching rugby, cricket or football is Biltong and Droewors which are dried sausages.

Mealie Pap is a popular porridge made of cornmeal. Slap pap (runny porridge) is usually eaten for breakfast with butter, milk and sugar. Stywe pap is a thicker preparation usually eaten with stews and meat.

General Highlights

CountrySouth Africa
Num. States / ProvinceThere are 9
Principal CitiesPretoria, Johannesburg, Cape Town, Durban
LanguageThere are 11 languages of South Africa, English is among those and is commonly used.
Local CurrencySouth African Rand
Major ReligionChristianity
Date Formatdd/mm/yyyy
Thousands Separator Format9 999 999,00
Country Dial Code+27
Time ZoneUTC +2
Population61 million
Border CountriesNambia, Botswana, Zimbabwe, Mozambique, and Swaziland.
Continental surface1,219,602 km2
Fiscal YearApril 1 – March 31
VAT %15%


Minimum Wage

Recommended, but not mandatory, 2,474 rand per month (approximately $96.24 USD) for the private sector jobs
Taxpayer Identification Number Name in the countryTIN
Current PresidentCyril Ramaphosa

Key Tax and Labor Authorities

South African Revenue ServiceOr SARS, this deals with taxes in South Africa
Department of Employment and Labor – DOL


This department handles labor related issues.

Labor Contracts


The employment contract is an integral part of labor law in South Africa and though a written contract is recommended, it is unnecessary for a valid employment.

A verbal contract works if the following is agreed upon: Offer and acceptance; Agreement on specific tasks to be performed, remuneration, duration and hours of work; and. Intention to create legal relations

The International Labor OrganizationThey are a member
Work HoursIn South Africa, most employees work Monday to Friday, from 9 to 5. They can only work up to 10 extra hours a week, and no more than 12 hours a day.


Legal Benefits in South Africa

Minimum WageRecommended 2,474 rand per month (approximately $96.24 USD) for the private sector.
OvertimeThe legal rate for overtime is 1.5 times the normal wage rate.

Christmas Bonus

(13th cheque)

South African Labor Law does not require this but it is customary.

National Institute for Occupational Health (NIOH)

All employers are obliged to register with a carrier which is either the Compensation Commissioner of the Compensation Fund or a designated mutual association such as RMA or FEMA.

COIDA governs the objectives of the Compensation Fund.

COIDA seeks to provide for compensation for disablement caused by occupational injuries or diseases in the course of employment, or related death.

Vacations or PTOThe Department of Labour in South Africa stipulates that workers must receive 21 consecutive days of paid annual leave, one day off for every 17 days worked, or one hour off for every 17 hours worked

Leaves of Absence

Employees have the right to paid absences for the following things:

•       Annual Leave – 21 consecutive days on full pay annually

•       Maternity Leave – Four weeks before birth of the child and six weeks after

•       Sick Leave – 15 days per year

•       Family responsibility Leave – Three days of paid family responsibility absence from work per year

Employers Contribution or Labor Cost

Annual Taxable Income

Over this amountNot over this amountTax % on Excess
 Up to R205,90018% of taxable income
R205,901R321,600R37,062 + 26% of taxable income above R205,900
R321,601R445,100R67,144 + 31% of taxable income above r321,600
R445,101R445,200R105,429 + 36% of taxable income above R584,100
R584,201R744,800R155,505 + 39% of taxable income above R584,200
R744,801R577,300R218,319 + 41% of taxable income above R744,800
R1,577,301 and above R559,464 + 45% of taxable income above R1,577,300

Corporate Tax Rates

The corporate tax system in South Africa is 28% and collected by the South African Revenue Services (SARS), different tax rates apply for smaller or different kinds of companies. From 1 April 2022, the flat tax rate will lower to 27%.


Work injury benefits:
Must be assessed with a work injury or occupational disease to apply for this benefit and it must be reported within 12 months.

Occupational disease benefits:

This is paid if the employee is diagnosed with an occupational disease.

Public Holidays

Public holidays observed in South Africa

DateHoliday Name
1 JanuaryNew Year’s Day
21 MarchHuman Rights Day
Friday before EasterGood Friday
5 AprilFamily Day
1 MayWorkers’ Day
16 JuneYouth Day
9 AugustNational Women’s Day
24 SeptemberHeritage Day
16 DecemberDay of Reconciliation
25 DecemberChristmas Day


Rules for termination of an employment contract.

Type of TerminationBrief Description

Justified Dismissal

Proper grounds for termination include:

The conduct of the employee, the capacity of the employee, and the operational requirements of the employer’s business.

Unjustified DismissalA dismissal is unfair if it is not in accordance with a fair procedure.

Voluntary Resignation

Two weeks’ notice must be given if the employee has been serving for more than six months, but less than 12 months.

But four weeks if employed for more than 12 months.

The employer and employee may change these terms

Other forms of compensation upon termination include
In terms of the Basic Conditions of Employment Act 75 (BCEA), employees who are let go due to no need for the employee or a match for the company’s performance standard are “retrenched”. Retrenched employees are entitled to a minimum severance payment of one week’s pay for each completed year of service.

Length of Employment

Severance Amount

One year and up

One week’s pay per year worked

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Great talent deserves great benefits. We offer a competitive range of benefits so that you only attract top-tier talent worldwide.

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