Employer of Record South Africa

Country Info

– South Africa.

Country Information

General Company Information

Population

63 million

Currency

Rand (ZAR)

Time Zone

GMT +2

Official Business Language

English

Important Abbreviations

BCEA – Basic Conditions of Employment Act

CCMA – Commission for Conciliation Mediation and Arbitration

Sporting Achievements

The only country to have ever won the Rugby World Cup 4 times

Most Popular Food

Braaivleis (Barbeque)

Most Famous South African

Nelson Mandela

Employer Cost – Mandatory Employer Contributions

·        Unemployment Insurance Fund (UIF): 1% of Gross Salary up to a ceiling of R17 712 per month, i.e. the maximum UIF contribution is R 177.12 per month.

·        Skills Development Levy (SDL):1% of Gross Salary

·        Compensation for Occupation Injuries and Diseases Act (COIDA):   0.25% of Gross Salary

Paid time off

Public Holidays: 

South Africa celebrates 12 public holidays:

·        New Year’s Day

·        21 March: Human Rights Day

·        Good Friday

·        Easter Monday/Family Day

·        27 April: Freedom Day

·        1 May: Workers’ Day

·        16 June: Youth Day

·        9 August: National Women’s Day

·        24 September: Heritage Day

·        16 December: Day of Reconciliation

·        25 December: Christmas Day

·        26 December: Boxing Day/ Day of Goodwill

 

Annual Leave:

Minimum 15 working days.  Leave not taken at the end of the cycle is carried forward to a next leave cycle for 6 months before it is forfeited.  Leave days not taken are paid out on termination.

Sick Leave:

30 days in a 3-year cycle.

Family Responsibility Leave:

3 days per year and may be used when:

  • if an employee’s child or adopted child is sick (younger than 18 year)
  • upon the death of the employee’s spouse or life partner; the death of the employee’s parent, adoptive parent, child, adopted child, grandchild, grandparent, or sibling

Unpaid Time Off

Maternity Leave

Up to four months unpaid leave.

Parental Leave

At least 10 consecutive days unpaid parental leave in the event of the birth of his/her own child or the adoption of a child.

PS: Employees can claim from the Unemployment Insurance Fund (UIF) for maternity or paternity leave if the company does not provide maternity or paternity benefits (not required by law). In such cases, the UIF will compensate eligible employees during their leave period, provided they meet the necessary contribution and eligibility requirements.

Income Tax

Individual income tax ranges between 18% and 45%.  Income tax is calculated according to progressive rates.

Work Visa

Any foreigner who wishes to work in South Africa has several options of temporary work visas. These include general employment, inter-company transfer, highly skilled migrant, or business entrepreneur.

There are fewer opportunities for employment in South Africa in unskilled or semi-skilled positions.

The types of South African work visas depend on the applicant’s employment/financial/skills position.

Two of the most commonly requested visas are:

·                  Critical Skills Work Visa: The South African Department of Home Affairs periodically publishes a list of critical skills in demand by the government. Applicants who possess these skills can apply for a Critical Skills Work Visa. The duration of the visa is five years, though it is possible to apply for permanent residency in South Africa under some conditions.

·                  Corporate Visa: A Corporate Visa is granted to a corporate entity, allowing the company to hire a pre-determined number of foreign workers for three years.

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