Business · Employer of record
Employer of record in South Africa
Employing someone in South Africa through an employer of record: UIF, the skills levy and COIDA, the national minimum wage, leave, notice, severance and why dismissal needs a fair reason.
Checked on 16 October 2026. The headline rules for a standard employee, from official sources where they opened and law firm, PwC or specialist publisher guides where they didn't; each line names its source. Sectors, collective agreements and contracts can change them. This is general information, not legal advice.
Know this first
- Dismissal isn't at will: it needs a fair reason and a fair procedure, and a new dismissal code took effect on 4 September 2025.
- The employment act text we could open is a 2014 version; the core rules are believed unchanged, but check them with your provider.
- Sector and bargaining-council agreements can raise minimums in some industries.
Sources: Fasken, the 2025 dismissal code, Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za)
Employing someone in South Africa
- Employer costs on top of salary
- Low: UIF of 1% (the employee pays another 1%) on pay up to R17,712 a month, a 1% Skills Development Levy once the payroll is expected to pass R500,000 a year, and a yearly Compensation Fund (COIDA) assessment based on earnings and the risk of the work. There's no state pension contribution. SARS, UIF, August 2026, SARS, Skills Development Levy, August 2026, gov.za, paying the Compensation Fund
- Minimum wage
- R30.23 an hour from 1 March 2026, for all workers including farm and domestic workers. SAnews (government), February 2026
- Holiday
- 21 consecutive days a year (15 working days on a 5-day week), plus 12 public holidays; when one falls on a Sunday, the Monday is a holiday. Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za), Labour Guide, annual leave, April 2025, gov.za, public holidays
- Working hours
- 45 ordinary hours a week, 9 a day on a 5-day week. These limits protect staff earning up to R269,600.90 a year, from 1 May 2026. Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za), Bowmans, April 2026
- Probation
- No fixed maximum: it must be reasonable for the job. Before dismissing someone on probation, the employer must give feedback and let them respond. Labour Guide, probation, Fasken, the 2025 dismissal code
- Notice from the employer
- 1 week in the first 6 months, 2 weeks up to a year, then 4 weeks. Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za)
- Severance
- Only for redundancy (operational requirements): at least 1 week's pay per completed year of service. Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za)
- Extra pay the law requires
- We found no legal requirement for a 13th cheque or bonus.
- Contract
- Written particulars, including pay, hours, leave and notice, must be given when the job starts. If the employee can't understand them, they must be explained in a language and manner they understand. Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za)
- Payroll and tax
- Pay daily, weekly, fortnightly or monthly, within 7 days of the period ending, with a payslip. The employer deducts PAYE and pays it with UIF and the skills levy within 7 days of the month-end. Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za), SARS, employment taxes
- Sick pay
- Paid by the employer: over each 3-year cycle, as many days as the person normally works in 6 weeks (30 on a 5-day week). Basic Conditions of Employment Act (2014 copy, lawlibrary.org.za)
Providers and what they say about South Africa
What each provider's own website says about South Africa, in order of its published starting price. None of them publishes a separate price for South Africa; the starting prices are worldwide or regional (Papaya quotes EUR 650 in Europe), and what you pay is set by quote.
| Provider | Covers South Africa? | What it says | Starting price a month | |
|---|---|---|---|---|
| Skuad | Yes, on its own site | Listed in its coverage list | From USD 199 | Go to Skuad |
| Pebl (formerly Velocity Global) | Not stated | - | USD 399 | Go to Pebl (formerly Velocity Global) |
| Multiplier | Not stated | - | From USD 459 (annual), USD 499 monthly | Go to Multiplier |
| Deel | Yes, on its own site | - | From USD 599 | Go to Deel |
| Remote | Yes, on its own site | Says it has its own entity | From USD 599 | Go to Remote |
| G-P (Globalization Partners) | Not stated | - | From USD 599 | Go to G-P (Globalization Partners) |
| Atlas HXM | Yes, on its own site | - | From USD 599 | Go to Atlas HXM |
| Papaya Global | Not stated | - | From USD 650 (EUR 650 in Europe) | Go to Papaya Global |
| Oyster | Not stated | - | From USD 699 | Go to Oyster |
| Rippling | Not stated | Says 80 countries, with no list | Quote only | Go to Rippling |
Coverage is each company's own claim, from its country pages and coverage lists; we haven't checked how each one employs there. Ask whether it uses its own company or a partner in South Africa.
Other countries
Employer costs, leave, notice, severance and the catches, with the providers that cover each one.
United KingdomIrelandGermanyFranceNetherlandsSwedenSwitzerlandBelgiumSpainPortugalItalyPolandRomaniaCanadaAustraliaSingaporeJapanIndiaPhilippinesMexicoBrazilColombiaChileArgentina
All 25 countries side by side: employer cost at your salary, holiday, notice and redundancy pay