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Hire Employees in South Africa
South Africa is one of Africa’s most advanced economies, combining strong infrastructure, highly skilled and diverse workforce and well-developed business environment. Hire talent in South Africa quickly without setting up a legal entity. Our professional team will take care of employment, payroll and compliance, while you can focus on scaling your team.
Hiring South Africa?
Expanding your team to South Africa doesn’t have to be complicated. With ThisWorks you can hire employees in South Africa through our Employer of Record service.
ThisWorks will take care of legal employment, payroll and benefits administration, while ensuring the compliance with South African labour law. With our EOR service you benefit from:
- Fast hiring process. Onboard employees within days, not months
- No need to establish a local entity, therefore, lower costs of expansion
- Fully compliant employment and payroll management. Safeguard your company from possible financial and legal liabilities.
- Access to local expertise in South African labour law. South African labour law is considered challenging due to strong pro-employee focus. By using the EOR service you can receive support in navigating this field.
In addition to EOR services we also support businesses with entity setup , payroll services, work permits, and employee relocation, allowing you to scale your operations with ease and confidence.
Why Hire Employees in South Africa
In recent years South Africa has become a popular destination for international hiring. The geographical location of the country makes it popular for companies wishing to start their expansion to African markets, while established business relationships with the EU helps to make this expansion smoother.
There are several reasons why many companies consider South Africa as their next step in international growth:
- Large skilled workforce across multiple industries - South African work culture is often described as a “can-do approach”. Talent from South African is widely known to be diversified, highly skilled and experienced in remote work.
- Strong sectors including tech, finance and customer support - South African talent pool provides access to experienced professionals who can support scalable business growth.
- English widely spoken in business environment - According to EF English Proficiency Index of 2026 South Africa shares the first place of English proficiency across all African markets together with Zimbabwe. English is the primary language of business, making communication within international teams efficient.
- Favourable time zone with Europe - Depending on the time of year, South Africa operates in the same or just one hour ahead of the Central European time zone, enabling seamless real-time collaboration with European teams.
- Strategic getaway to Africa - Due to the developed infrastructure and connectivity many companies use South Africa as a strategic base for their African expansion.
How Our Employer of Record Service Works in South Africa
Using an employer of record services should not be difficult with the right provider. We make hiring in South Africa simple and efficient for you with a clear step-by-step process.
- Step 1: you identify the candidate you want to hire. You select the right South African - based candidate for your business either through your own recruitment process or with external support. ThisWorks EOR also provides recruiting services, as well as salary benchmarking service. Please reach out to us via contact form for more information on how we can help you in this process.
- Step 2: ThisWorks becomes the legal employer through our EOR service. We employ the chosen candidate through our local entity in South Africa, taking on all legal employer responsibilities. We issue a fully compliant local employment contract.
- Step 3: ThisWorks manages payroll, taxes, benefits and compliance. Our team of professionals handles monthly processing, tax deductions, social contributions and benefits administration. We also stay on top of all labour law changes ensuring full compliance at all times.
- Step 4: Your employee works directly with your team. The employee is integrated in your team and contributes to your business.
What Is a South Africa Employer of Record?
If your business has never used this model, the employer of record is a third-party service provider that legally employs workers on your behalf in a specific country. For example, ThisWorks allows you to hire talent in South Africa without setting up a local entity.
In this model, the EOR becomes the official employer responsible for employer contracts and any subsequent employment documentation. In addition, EOR takes care of monthly payroll, tax and social security deductions, issuance of annual tax documentation, compliance with South African labour laws and legal representation in possible court cases.
Meanwhile, your business retains full control over day-to-day work, performance, responsibilities, communication with internal teams etc. In simple terms, EOR onboards and manages the employee from legal and administrative perspectives, while the company onboards the employee in the team. More on what is included in our EOR service packages.
Using the employer of record in South Africa or any other location enables companies to scale quickly and compliantly, avoiding the cost and complexity of establishing the local entity. In this way your business can benefit from simplified global hiring and reduced legal risks due to outsourcing of legal employment to a team of professionals.
Employment Regulations in South Africa
South Africa has a labour law framework with a strong employee focus. The government ensures that employees are treated fairly and equally by enforcing legislation such as, for example, Employment Equity Act (EEA) which addresses the ban of unfair discrimination and sets strict numerical targets for recruitment for employers with 50+ employees.
Here are a few things every company hiring in South Africa should pay attention to:
Employment contract.
Written contracts are not mandatory by South African labour law, but are highly advisable to avoid any legal disputes. The most common type of a contract is an indefinite contract. Fixed term contracts are possible, but not common as they require a justifiable reason for a contract longer than 3 months.
Dismissal and notice periods.
In case the employee or/and employee want to part ways in South Africa, dismissal under one of the legal grounds is possible. For example, employee misconduct (such as fraud, theft or insubordination) or inability to perform tasks ( poor performance or bad health) can serve as a reason for the start of the offboarding process.
BCEA regulates minimal notice periods that both employee and employer must note:
- The employee worked less than 4 weeks -> notice period is 1 week
- The employee worked more than 4 weeks, but less than a year -> 2 weeks notice period
- The employee worked for over a year -> notice period is 4 weeks
Minimum wage regulations.
Employers across sectors should comply with the minimum wage regulations that are updated regularly. The national minimum wage as of 01 March 2026 is ZAR 30.23 per hour.
Working hours and Overtime
The standard work week in South Africa is 40 hours with 45 hours / week being the legal maximum. In a five-day week that equals to 9 hours per day maximum. Overtime is possible with employee’s consent, but it is limited to 10 hours per week or 3 hours per day. Overtime must be compensated at the rate of 1.5 times the employee’s regular wage during Monday- Saturday or 2 times the wage when working on Sunday.
Employee leave entitlement
There are several types of leave available for the employees in South Africa. As such, employees are entitled to 21 consecutive days of paid annual leave, which equals to roughly 15 working days. Employees are also entitled to paid sick leave, and leave related to child care such as parental leave or family responsibility leave (after at least 4 months of employment).
In addition to this, some employees may require a working permit in South Africa. There are several types of permits available such as General Work Visa or Critical Skills Work Visa. Each permit has a different set of requirements and different applications. If your next perfect candidate needs a work permit to be employed in South Africa, read about how we can help work permits and visas. Navigating all these requirements can be challenging for foreign companies. Using an Employer of Record ensures that employment is fully compliant with South African labour law.
Payroll & Compliance in South Africa
There are several payroll obligations applicable for employers in South Africa. Below are key payroll-related contributions each employer should be aware of:
Pay-As-You-Earn (PAYE)
Within 14 days from the start of employment, the employer should register the new employee for PAYE. Employers then must deduct the income tax from the employee and deliver it to South African Revenue Service (SARS). There are progressive tax rates ranging from 18% to 45%.
Unemployment Insurance Fund (UIF).
In order to support employees in cases of sudden unemployment, maternity or parental leave or illness, the contribution to the UIF should be made monthly. A total of 2% of an employee’s gross monthly remuneration should be contributed to the fund. This rate is split equally between the employee and employer.
Skills Development Fund (SDL).
SDL is a compulsory contribution of 1% of total remuneration that businesses must pay to support workforce training programs. This levy is enforced on employers with annual payroll exceeding ZAR 500,000.
In addition to these requirements the employers must ensure accurate payroll processing, timely registration of new starters with authorities, proper submission of social security contributions as well as proper record-keeping in line with South African labour law.
Failure to comply with set payroll requirements can result in financial penalties and administrative restrictions. By partnering with an Employer of Record, your company can benefit from payroll, contributions and benefits managed on your behalf. See how our company can manage payroll services for you and your business.
5. Frequently Asked Questions
What is an Employer of Record in South Africa?
An Employer of Record is a third-party provider that legally hires candidates in South Africa on your behalf, while your company manages day-to-day activities.
Can I hire employees in South Africa without setting up a company?
Yes, with the use of EOR you can hire employees without establishing a South African entity
How long does it take to hire employees through an EOR?
In most cases when no immigration support is needed employees can be onboarded within a few days after all details are confirmed.
What are the costs of using an Employer of Record?
Costs vary depending on the service scope needed for your business, but typically include a set monthly fee.
What employment laws apply in South Africa?
Employment in South Africa is mainly regulated by the Basic Conditions of Employment Act (BCEA) and the Labour Relationship Act (LRA). These legislation documents regulate minimum standards for working hours, leave and fair labor practices. Other laws include the National Minimum Wage Act and Employment Equity Act.
We are ready to support you on your expansion to South Africa!
Do not hesitate to reach out to us. You can reach us by dialing +31 850811200, send an email to hr@thisworks.nl or apply via our contact sheet!
Questions ?
Do you have questions?
Please contact
Juul
HR Consultant
