Hire in South Africa

Typical time to hire

2-3 weeks for contractor, 3-6 weeks for full-time

Entity requirement

South African Pty Ltd. Registration at CIPC (Companies and Intellectual Property Commission). SARS registration required.

EOR available

Yes — from $399/employee/month through a Corpshore entity

Contractor of record

Yes — from $39/worker/month

Standard workweek

45 hours (9 hours/day for 5-day week, 8 hours for 6-day)

Maximum weekly hours

45 hours

Minimum annual leave

15 working days (21 consecutive calendar days)

Public holidays

12 per year

Maternity leave

4 months unpaid (UIF pays up to 66% of salary)

Paternity leave

10 consecutive days (effective 2020)

Notice period

1-4 weeks depending on tenure (1 week under 6 months, 2 weeks 6 months-1 year, 4 weeks 1+ year)

Severance

1 week pay per completed year of service (operational requirements dismissal only)

Probation

Reasonable period (typically 3-6 months); Schedule 8 of the LRA provides guidance

Overtime rules

1.5x normal rate. Maximum 10 overtime hours per week. Sunday: 2x rate. Public holidays: 2x rate.

Income tax range

18% to 45%

Corporate tax

27% (reduced from 28% in 2023)

Social contributions

UIF: 1% employee + 1% employer. SDL (Skills Development Levy): 1% employer. No social security tax per se.

VAT / GST

15% (standard); 0% on basic foodstuffs

Tax year

1 March to 28/29 February

Treaty network

Over 70 tax treaties

Worker classification

BCEA and LRA provide strong employment protections. Code of Good Practice: Who is an Employee (Schedule 8) guides classification. Deemed employee provisions in BCEA Section 200A create a rebuttable presumption of employment.

Data protection

POPIA (Protection of Personal Information Act, effective July 2021). Information Regulator enforces. Aligns with GDPR principles. Mandatory notification of data breaches.

Right to work

Foreign nationals need a work visa (general or critical skills). Corporate visa allows companies to employ up to a quota of foreign nationals.

Non-compete

Enforceable under the common law of restraint of trade. Must protect a protectable interest and be reasonable. Courts apply a balancing test between employer's interest and employee's right to work.

Collective bargaining

CCMA (Commission for Conciliation, Mediation and Arbitration) handles disputes. Bargaining councils set terms for entire sectors. Union density ~27%. Strong in mining, public sector, and manufacturing.

South African banking is well-developed. EFT (Electronic Funds Transfer) is standard for payroll. BankServ handles interbank clearing. Wise supports ZAR.

• BBBEE (Broad-Based Black Economic Empowerment) compliance affects government tenders and some private-sector contracts
• Load shedding (rolling blackouts) has impacted business operations since 2007; solar/battery investment is widespread
• Cape Town has emerged as a major tech hub with a strong design and creative talent pool
• South Africa's legal system (Roman-Dutch law) provides strong contract enforcement and intellectual property protections