South Africa
Simplify compliance and mitigate risks in South Africa with Lerio's expert HR advice.
Hiring in South Africa at a glance
R / ZAR
40 hours / week
12 holidays / year
The most common payment frequency is monthly.
By law, employees can be paid monthly, bimonthly or weekly.
English
60M
R25.42 / hour
1 April to 31 March
Employment Tax
- Unemployment Insurance Fund (UIF): 1%
- Income tax: Determined based on income, see table below.
- Unemployment Insurance Fund (UIF): 1%
- Skills Development Levy: 1%
Income Tax
| Taxable Income | Tax Rate (%) | ||
| R1 – R237 000 | 18% | ||
| R237 101 – R370 500 | 26% | ||
| R370 501 – R512 800 | 31% | ||
| R512 801 – R673 000 | 36% | ||
| R673 001 – R857 900 | 39% | ||
| R857 901 – R1 817 000 | 41% | ||
| R1 817 001 + | 45% |
Employer of Record
in South Africa
Operating as the official employer, an Employer of Record is obligated to ensure compliance with all legal mandates concerning employment in Australia. This encompasses tasks such as managing payroll procedures, maintaining tax compliance, and furnishing employment contracts as per labor regulations.
Employer of
Record Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Umbrella Process
- Company
- Full legal name of prospective employee
- Employee contact details
- Employee nationality and residency status
- Proposed start date
- Right to work status
- Job title
- Working hours
- Job description and deliverables
- Salary information
- Benefit information
- Intellectual property and confidentiality agreement
- Terms of termination (e.g. notice period)
- Probation period
- EMployee bank details
- All other company-specific requirements (e.g. non-compete, intellectual property clauses, etc.)
Finds their perfect hire and provides Lerio with all the information required to prepare an employment agreement. For Australia, that includes:
- Lerio
Prepares the employment agreement and shares with the prospective employee for signing. Requests all additional documents such as identity documents, proof of right to work in Australia, tax information, etc.
- Employee
Signs employment agreement and submits required documents.
- Employee
Now no longer a prospective employee but simply an official employee, who ensures to keep Lerio updated on any personal information changes.
- Lerio
Onboards employee to payroll and benefit programs to get started ensuring that salaries are paid every month and benefits are administered. Tax contributions and benefit fees are paid and payslips are provided to the employee.
Lerio provides an invoice and statement to the company for each month.
- Company
Receives monthly invoice, reviews and processes. Provides information on whether anything has changed in their relationship with the employee, the employee’s role or the company that will have an effect on the upcoming payroll run.
Employee Benefits
- Unemployment Fund
- Workers compensation insurance
Non-mandatory
Employee Benefits
- Medical Insurance
- Pension fund
- Life and disability Insurance
- Annual bonus
- Income protection
Employee Rights
- Equal and equitable opportunities and treatment
- Payslips showing all deductions and income
- A safe and healthy work environment free from risk
- Fair and just dismissals
- Protection from bullying, discrimination and sexual harassment
- Protection of personal information
Leave
15 days per year
30 days fully paid leave in a 36 month cycle, all of which is available after 6 months of work and paid for by the company.
16 weeks paid maternity leave at a rate between 38% and 58% of standard salary, capped at R12 478. Unemployment insurance pays this directly. Leave can start anytime from 4 weeks prior to due date.
10 days days 100% paid leave, paid by the company
3 days for a defined list of personal responsibilities and emergencies.
Employment agreements can define notice periods and are generally 30 days, raising to 3 months for senior roles. Statutory default notice periods are:
- Less than 6 months: 1 week
- 6 – 12 months: 2 weeks
- 1 year +: 4 weeks
Probation
Not a requirement but standard is a 3 month probation period.
What is a work permit in South Africa?
Work permits are official documents from a country’s government that qualifies an individual to legally work and live in the country. However, this is a broad term and many countries require more than one official document and may use different terms to refer to these documents – and South Africa is one of the countries that doesn’t use the term work permit.. Essentially all terms are referencing documents that prove someone has been given the legal right to work and live in the country.
In South Africa, the term work visa is used and the visa is the only document you need to prove that you can legally live and work there.
Who needs a work permit in South Africa?
Anyone who is not a South African citizen or a permanent resident has to obtain a work permit before legally being allowed to work in South Africa. Though most countries belong to a group of countries who have a free movement or similar arrangement, and/or bilateral agreements with another country which allow citizens from some other countries to legally work and live there, South Africa is not one of those. Everyone who is not a citizen or a permanent resident of South Africa requires a work permit. The only exception is that there are different, and simpler, processes for family members of foreigners who already have work permits for South Africa.
How long does a work permit take in South Africa?
Visas will be processed within 6 to 8 weeks.
Types of work visas in South Africa
General Work Visa
General work visas are available to individuals who have specific skills relevant to an employer that the employer cannot find locally, but that is not on the critical skills list.
Eligibility
- Offer of employment from a South African company
- Company must be able to prove a legitimate need to hire a foreigner into this role instead of someone local
- Applicant has the necessary skills, experience and qualifications to fulfil the role
- The offered salary and benefits must be market-related
Critical Skills Visa
The critical skills visa is available to anyone who is a professional or skilled worker in fields where the government has identified a critical skills-gap.
Eligibility
- Occupation must be on the critical jobs list
- Offer of employment from a South African country OR there is an allowance for a short-term “job seeker” visa which follows the same process and requires the same documents
Other visas
In addition, visas are available for entrepreneurs, intra-company transfers and short-term assignments.
Application process in South Africa
Department of Labour Certificate
Certification from Department of Labour (only for general work visa)
Employer to submit directly to the department of labour.
- Employers must submit a request for a Certification from the Department of labour that confirms necessary steps were taken to try to hire a South Africa citizen first. Employers can submit a general query through the Department of Labour’s website or go to one of their offices.
- Submit documentation that supports the need to hire the applicant
- Depending on the method of applying, receive either a physical or digital copy of the certificate
- Employer to share this with the applicant
Gather documentation
- Gather required documents
- Do medical examination and any other necessary
- If not done, have qualifications verified by SAQA
Apply for visa
- Applicant to make an appointment to visit a local consulate or embassy
- Attend appointment with all supporting documents
- Biometric information may be recorded
- A short interview may happen
- Applicant will be notified of outcome and visa will either need to be collected from consulate or will be delivered
What documents are required to apply for a work permit in South Africa?
Certification from Department of Labour
- Company registration information
- Description of the role
- Motivation as to how the applicant’s qualifications and experience aligns to the role
- Employment agreement
- Proof of skills and qualifications for the role
- Proof of qualifications translated into an official South African language and evaluated by the South African Qualifications Authority
- Proof of failed efforts to hire a South African citizen into this role such as,
- Market research of skills availability
- Proof of recruitment efforts
General Work Visa
- Completed application form DHA-1738
- 2 photos
- Employment agreement
- Department of Labour certification
- Proof of company registration with (Companies and Intellectual property Commission)
- Proof that company is in good tax standing
- Passport with 3 blank pages
- Proof of skills and qualifications for the role
- Proof of qualifications translated into English and evaluated by the South African Qualifications Authority, if not a South African qualification
- Proof of financial stability
- Medical report BI-811 that is not older than 6 months
- Radiological Report BI-806 that is not older than 6 months
- Police clearance from any country you’ve lived in for 12 months or more
- Proof of funds
- If applicable, all marriage certificates
- If applicable, all divorce certificates
- Proof of accommodation in South Africa
- Flight itinerary
Critical Skills Visa
- Completed application form
- Passport with 3 blank pages
- Proof of company registration with (Companies and Intellectual property Commission)
- Proof that company is in good tax standing
- Employment agreement
- Proof of skills and qualifications for the role
- Proof of qualifications translated into English and evaluated by the South African Qualifications Authority, if not a South African qualification
- Proof of financial stability
- Medical report BI-811 that is not older than 6 months
- Radiological Report BI-806 that is not older than 6 months
- Police clearance from any country you’ve lived in for 12 months or more
- Proof of funds
- If applicable, all marriage certificates
- If applicable, all divorce certificates
- Proof of accommodation in South Africa
- Flight itinerary
Contact Us
If you have questions - feel free to ask them. We are happy to help our clients.