Global Expansion Guide

South Africa

Manage and pay your employees easily with BIPO in South Africa and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

South African Rand (ZAR)

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Language

Afrikaans, English

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Capital

Pretoria,

Cape Town,

Bloemfontein

Employer of Record South Africa

Embark on your business expansion in South Africa with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the South African market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

The Basic Conditions of Employment Act (No. 75 of 1997–BCEA) requires that the employer and employee shall enter into a written employment contract containing the following:

  • Name and address of the employer
  • Name of the employee
  • The employee’s occupation or a brief job description of the work for which the employee was employed
  • The employee’s workplace
  • The date of commencement of employment
  • The employee’s normal workdays and working hours
  • The overtime compensation
  • The employee’s wage or the calculation method
  • Any other payments in cash or kind to which the employee may be entitled (and for payments in kind, the value of those payments)
  • Payment date
  • Details of any deductions from payroll
  • Leave entitlements
  • The notice period of termination
  • A description of any bargaining council or sectoral determination that governs the employer’s business
  • A list of any other documents that form part of the contract
  • Any period of employment with a previous employer that counts towards the employee’s employment years.

Statutory Contributions

ItemDetailEmployer ContributionEmployee Contribution
Unemployment Insurance (UIF)Unemployment benefits1%1%
Skills Development Levy (SDL)Improvement of professional skills1%
Compensation For Occupation injuries and disease(COIDA)Work injury and occupational diseases benefitsVaries by industries and number of employee and reports to relevant departments every year
 TotalAbout 2%About 1%

Minimum Wage

Starting 1st of March 2025, the national minimum wage (NMW) of South Africa has been increase from 27.58 ZAR per hour to 28.79 ZAR per hour. The new minimum wage standard also stipulates minimum wage standards for workers in certain industries.

Public Holidays

The National Public Holidays in South Africa in 2025 is shown as following. Please refer to the government or local announcement.

Holiday NameDate
New Year’s Day1 January 2025
Human Rights Day21 March 2025
Good Friday18 April 2025
Family Day21 April 2025
Freedom Day27 April 2025
Freedom Day Holiday28 April 2025
Workers’ Day1 May 2025
Youth Day16 June 2025
National Women’s Day9 August 2025
Heritage Day24 September 2025
Day of Reconciliation16 December 2025
Christmas Day25 December 2025
Day of Goodwill26 December 2025

Working Hours

Normal Working Hours

Working day means a period of 24 hours measured from the time when the employee normally commences work. An employer may not require an employee to work:

  • More than 45 hours in any week;
  • More than 9 hours in any day if the employee works five days or less in a week; or
  • More than 8 hours in any day if the employee works more than five days a week.
  • The normal working hours of an employee may be averaged over a reference period of up to four months in terms of a collective bargaining agreement, the average working hours per week of an employee should not exceed 45 hours.

Rest Time

  • An employer must give an employee who works continuously for more than five hours a meal interval of at least 60 minutes.
  • With a written agreement, the meal interval may be shortened to no less than 30 minutes. An agreement can remove a meal interval for an employee who works fewer than six hours a day.
  • Daily Rest Period

    • An Employer must allow an employee to have a at least 12 consecutive hours rest between two working days.
    • For employees who live in the workplace and whose meal intervals exceed 3 hours, the daily rest period can be shortened to 10 hours by negotiating and signing a written agreement with the employer.
  • Weekly Rest Period

    • Employers are required to provide employees with at least 36 consecutive hours of rest per week, which must include Sundays unless otherwise agreed.
    • With a written agreement, other rest arrangements may be provided:

      • If it is agreed that the employees have at least 60 consecutive hours of rest in each two-week reference period; or
      • If the rest period in a week is less than 36 hours, the rest period in the following week is extended accordingly.

Night Work

  • The night working hours are between 6:00 pm one day and 6:00 am the next day.
  • Employers can only arrange night shifts with the consent of employees. Employees who work on night shifts are entitled to night shift allowances or reduced working hours. Collective bargaining agreements can stipulate specific compensations.
  • In addition, employers must ensure that employees are provided with transportation to and from their homes and workplaces at the beginning and end of their shifts.
  • If an employee is required to work between 11:00 pm and 6:00 am the next day, the employer must:

    • Notify the employee in writing or verbally (in a language they understand) of any health and safety risks associated with the work and their right to the medical examinations;
    • Arrange medical examinations and regular physical checkups for the employee before and after the night shift and bear the relevant costs;
    • If the employee develops health problems due to working on night shifts, the employer must transfer the employee to suitable day shifts.
  • An employee who works more than one hour between 11:00 pm one day and 6:00 am the next day; works five-night shifts per month or not less than 50-night shifts per year is considered as a regular night shift employee.

Overtime

  • Any hours worked in excess of standard working hours are considered overtime.
  • Overtime restrictions:

    • Employers and employees must sign an overtime agreement. Overtime must be voluntary, and employers cannot force employees to work overtime. The agreement must stipulate that the maximum daily working hours for employees shall not exceed 12 hours.
    • Overtime shall not exceed 10 hours per week.
    • Overtime shall not exceed 3 hours per day.
  • Overtime pay:

    • Employers must pay employees at least 1.5 times regular wage as overtime pay or give them time-off-in-lieu.
    • A collective bargaining agreement may increase overtime to a maximum of 15 hours per week, or no more than 2 months within a 12-month period.
    • A collective agreement may increase overtime to 15 hours per week for up to two months in any period of 12 months.
    • An overtime agreement may stipulate compensatory time off (time-off-in-lieu) for overtime work:
      • Pay employees’ overtime pay and grant them at least a 30-minute break for every hour of overtime worked; or
      • Grant employees at least a 90-minute break for each hour of overtime that they worked.
  • An employer must grant time-off-in-lieu within one month of the employee becoming entitled to it. An agreement in writing may increase the period contemplated to 12 months.
  • Any agreement relating to overtime automatically terminates after one year.

Probationary Period

  • The Labour Relations Act (No. 66 of 1995–LRA) provides for employers in South Africa to agree on a probationary period but not specify the duration of the probationary period. In practice, a “reasonable” probationary period is three months. It can be longer or shorter depending on the nature of the work.
  • In addition, a probationary period does not mean that employers can arbitrarily dismiss new hired employees if they are not satisfied with their performance. Employers must follow the correct procedures and meet legal requirements. The dismissal procedure must be “factually and procedurally fair”.

Leave

Statutory leaves in South Africa include:

Type Applicable to Details
Annual Leave Employees who have served for 12 months 21 days
Sick Leave All Employees 6 weeks within 36 months; during the first six months, one day’s sick leave for every 26 days worked.
Pregnancy and Maternity Leave Female Employees 4 months
Paternity Leave Male Employees 10 days
Commissioning Parental Leave All Employees 10 weeks (as commissioning parent)
Adoption Leave All Employees 10 weeks (who adopts children under two years of age)
Family Responsibility Leave All Employees (who have worked full time for 4 months) 3 days per year

Termination and Compensation

Notice Period

Length of Service Notice Period
≤ 6 months One week in advance
> 6 months, < one year Two weeks in advance
General employees ≥ one year (farm or domestic worker > 6 months) Four weeks in advance
  • Under Article 37(2)(b), a collective bargaining agreement may allow for the four-week notice period to be reduced to not less than two weeks.

Compensation

For every year of service, the employer shall pay the employee one week’s salary as severance pay. Although the sets out minimum terms and conditions of employment, the parties to an employment contract may agree on terms and conditions that are more favourable to the employee than those provided for in the . In the case of severance pay, it is not uncommon for the amount of severance pay stipulated in a collective agreement or employment contract to exceed the amount provided for in section 41(2). In addition, the parties may also reach an agreement on this during the redundancy negotiation process.

The employer is also required to pay the employee:

  • Any unpaid wages
  • Any unpaid compensation, severance pay
  • Any unused leave entitlements (up to the date of termination)
  • Payments in lieu (under the BCEA or as agreed in the employment contract)

The calculation of the compensation for annual leave entitlement, notice period of termination and severance pay must include:

  • Housing or accommodation allowance or subsidy received as a benefit in kind.
  • Car allowance for the provision of a car, except for driver-type jobs.
  • Any cash wage paid to the employee.
  • Any other payment in kind received by the employee.
  • Employer contributions to medical assistance, pension, provident fund or similar schemes.
  • Employer contributions to funeral or death benefit schemes.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with South African regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with South Africa’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to South Africa’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with South Africa’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in India

Unlock your growth potential with BIPO’s Employer of Record service in South Africa. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

Find out more?

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One-all-one HR global platform with integrated features to manage your business.

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