Employer Of Record in South Africa

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

Key Tax and Labor Authorities

Labor Contracts

Payroll

Legal Benefits in South Africa

Employers Contribution or Labor Cost

Annual Taxable Income

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%.

Disability

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

Termination

Rules for termination of an employment contract.

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.