Fully Managed Hiring Solution
Hire in South Africa
NINE Employer of Record (EOR) Services
Basic Labour Laws
Probation Period In South Africa, the standard probationary period may vary. Most probation periods are three months, but this can vary depending on the position and the employer.
Notice During Probation 6 months or less: 1 week
6–12 months: 2 weeks
12+ months: 4 weeks
Working Hours Max 45 hours/week (9 hours/day for 5-day week)
Overtime Paid for those under R20,092.55/month
Normal: 1.5× | Sundays/Public: 2×
Max: 10 hours/week
13th Month Pay Not mandatory; employer discretion
Leave Policy
Annual/Earned Leaves 15 working days (5-day week)
18 working days (6-day week)
Sick Leave 30 days in a 36-month cycle
Public Holidays 12 public holidays
Maternity Leave 4 months
Paternity Leave 3 days
Childcare Leaves 3 days per annum
Leave Carry Forward Policy Up to 5 days can be carried forward to the next year
Payroll & Taxation
Payout Currency Rand (ZAR)
Minimum Wages R27,58 per hour
Income Tax (Individual) Ranges from 18% to 45%
Employer Cost ~7% on USD 60,000 salary (varies based on factors)
Additional Employer Costs Yes
VAT No
Benefits
Public Health Insurance Not mandatory
Private Health Insurance Medical Savings Account (MSA) covers day-to-day costs like GP, labs, X-rays
Social Security Includes UIF and COIDA contributions for unemployment, maternity, injuries
Other Services
Devices Support for procurement and shipment (service fee applies)
Co-Working Spaces Support available
Expats Not supported
Important Dates
Pay Date Last working day of the month
Expenses/Adjustment Cut-off 15th of the month
Onboarding Cut-off 20th of the month
Termination
Termination Scenarios Includes resignation, mutual agreement, probation termination, misconduct
Notice Period 1 to 4 weeks, depending on tenure
Severance Payable 1 week’s pay per year of service
Onboarding
Onboarding Time ~10 working days
Health Insurance Enrollment 5–7 working days from start date
Device Shipment 12–14 working days depending on location and availability

Basic Labour Laws

Category Details
Probation Period Most probation periods are three months, but this can vary depending on the position and the employer.
Notice Period During Probation
  • Six months or less: One week
  • More than six months but not more than one year: Two weeks
  • One year or more: Four weeks
Notice Period After Probation
  • Six months or less: One week
  • More than six months but not more than one year: Two weeks
  • One year or more: Four weeks
Working Hours Maximum 45 hours per week (9 hours per day) for a 5-day work week.
Overtime Hours
  • Overtime is allowed in South Africa.
  • Employees earning below the earnings threshold (currently R241,110.59 per year or R20,092.55 per month as of 2024) must be paid for overtime.
  • Employees above the threshold can negotiate overtime as part of their contract.
  • Normal Overtime: 1.5 × normal hourly rate
  • Sunday/Public Holiday Overtime: 2 × normal hourly rate (unless the employee usually works on Sundays, then only 1.5× applies)
  • Maximum overtime allowed: 10 hours per week (for employees working a 5-day week).
  • Overtime must be agreed upon in writing.
End of Service Benefit There is no statutory requirement for gratuity in South Africa.
13th Month Pay There is no legal requirement but it's at the discretion to pay 13th month salary.

Leave Policy

Leave Type Details
Annual/Earned Leaves
  • 15 working days for 5 days work week
  • 18 working days for 6 days working week
Sick Leave 30 days in 36-month sick leave cycle.
Public Holidays 12 public holidays.
Maternity Leave 4 months.
Paternity Leave 3 days.
Childcare Leaves 3 days per annum.
Leave Carry Forward Policy It is recommended to put a cap of 5 days of leave carry forward to next year.

Payroll & Taxation

Category Details
Payout Currency Rand (ZAR, R)
Minimum Wages R27.58 for each ordinary hour worked.
Income Tax (Individual) The individual income tax ranges from 18% to 45%.
Employer Cost ~7% on an annual salary of USD 60,000. (The employer cost can vary depending on the employee’s salary and other local factors. Please use the Skuad Cost Calculator tool for more accurate cost.)
Additional Employer Costs Yes
VAT No

Benefits

Benefit Type Details
Public Health Insurance Public Health Insurance is not mandatory in South Africa.
Private Health Insurance The Private health Insurance works differently in South Africa. The Medical Savings Account (MSA) is an amount that is provided to you at the start of the year. You can use this money to pay for day-to-day medical costs like doctor visits, blood tests, X-rays and dentist visits. Reach out to our team for more details.
Social Security In South Africa, social security contributions primarily consist of payments to the Unemployment Insurance Fund (UIF) and the Compensation for Occupational Injuries and Diseases Act (COIDA). These contributions are made by both employers and employees to provide financial support in cases of unemployment, illness, maternity leave, workplace injuries, or death.

Other Services

Service Details
Devices We provide support for new device procurement & shipment. We levy a service fee for the same.
Co-Working Spaces We can support co-working spaces.
Expats We cannot support Expat hiring in South Africa.

Important Dates

Date Type Details
Pay Date Last working day of the Month.
Expenses/Adjustment Cut off 15th of the Month.
Onboarding Cut off 20th of the Month.

Termination

Category Details
Termination Overview Employers in South Africa can terminate employees based on valid grounds and termination without valid grounds may be considered unfair dismissal and can lead to legal consequences for the employer. Terminations is a complicated process and needs to be handled delicately on a case to case basis.
Termination Scenarios
  • Employee Resignation
  • Mutual Agreement between the employee and the employer
  • Termination during Probationary Period
  • Termination by Employer due to Misconduct, Performance issues, Absence without Leave, etc.
Notice Period Notice period can vary from One week to Four weeks.
Severance Payable Severance pay equal to at least one week's remuneration for each completed year of continuous service with that employer.

Onboarding

Onboarding Process Details
Onboarding Time Complete Onboarding process takes approximately 10 working days.
Enrolment in Private Health Insurance Employee enrolment in Private Health Insurance can take 5-7 working days from the employee’s start date.
Device Shipment Device procurement and shipment can take anywhere between 12-14 working days depending on device availability and shipment location.