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Hiring Employees in South Africa: A Comprehensive Guide

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Written by Asma Makni
Updated this week

Table of Contents

  1. Introduction

  2. Key Considerations for Employing in South Africa

  3. Benefits

  4. Employment Contracts

  5. Onboarding

  6. Leaves

  7. Payroll & Taxes

  8. Termination Process

  9. Invoice Schedule

  10. Get Started with Omnipresent


1. Introduction

Hiring employees in South Africa requires navigating local employment laws, benefit expectations, and structured payroll systems. Omnipresent’s Employer of Record (EOR) service streamlines these processes to ensure compliance and a smooth employee experience.


2. Key Considerations for Employing in South Africa

  • Currency: South African Rand (ZAR, R)

  • Languages: Afrikaans, English, Zulu, Xhosa, and others (11 official languages)

  • Employer Costs: Low (~2% of salary)

  • Termination Complexity: Hard

  • Onboarding Timeline: ~18 calendar days

  • Payroll Frequency: Monthly


3. Benefits

What We Offer

  • Mandatory:

    • Workers’ Compensation

    • Unemployment Insurance

  • Supplementary:

    • Health Insurance (via SafetyWing)

    • Dental & Vision Coverage

    • Travel Insurance

    • Retirement Allowance (recommended but not provided)

Health Insurance

  • Public healthcare exists but is inadequate; supplementary health insurance is expected by most employees.

  • Omnipresent offers two plans via SafetyWing, covering hospitalization, ER visits, prescriptions, diagnostics, and more. Premium plans include dental and vision.

Retirement

  • No mandatory private retirement plan. Omnipresent recommends offering a retirement allowance to allow personal investment.


4. Employment Contracts

Contract Types

  • Indefinite-term contracts

  • Fixed-term contracts

  • Part-time contracts

Requirements

  • Written contracts are mandatory

  • Language: English

  • Signature: Simple electronic signature

  • Backdating: Not permitted

Contract Customisation

  • Customisable: Extra leave, additional sick days

  • Not customisable: Overtime, restrictive covenants, stylistic edits

Probation Period

  • Typically 3 to 6 months, based on job complexity

  • Always included except in case of employment transfer


5. Onboarding

Timeline

  • Approximately 18 calendar days, including:

    1. Platform Setup

    2. Right-to-Work Check

    3. Employment Contract

    4. Benefits and Payroll Enrollment

Registration & Approvals

  • No formal local registration required

  • Contracts can be signed as close as 24 hours before start date

Immigration & Visas

  • Omnipresent does not currently offer visa support through its entity

  • May provide visa support via local partners if needed

Right-to-Work

  • Identification (ID, passport, birth certificate) is required

  • Seniority may be recognized if transferred from another EOR


6. Leaves

Annual Leave

  • Minimum 15 working days/year

  • Must be used within 12 months of accrual

  • No carryover beyond the 12-month window

Maternity Leave

  • 4 months total (starts 4 weeks before due date)

  • Typically unpaid unless otherwise agreed

Paternity Leave

  • 10 consecutive days unpaid

Sick Leave

  • 1 paid sick day for every 26 days worked during first 4 months

  • Afterward, up to 6 weeks (30 days) paid over 36 months (for 5-day workweeks)

Public Holidays (12 Days)

  • Includes New Year’s Day, Human Rights Day, Good Friday, Easter Monday, Freedom Day, Workers’ Day, Youth Day, Women’s Day, Heritage Day, Day of Reconciliation, Christmas Day, and Day of Goodwill


7. Payroll & Taxes

Payroll Cycle

  • Monthly

    • Run: 1st to last day of month

    • Cut-off: 6th

    • Payment: Last working day of the month

Compensation

  • Minimum Wage: ZAR 25.42/hour

  • Extra payments (bonuses, commissions): Not required

  • Hourly wage employment is not supported by Omnipresent

Work Schedule

  • 8 hours/day, 40 hours/week, Monday to Friday

Employer Costs


8. Termination Process

Grounds for Termination

  • Misconduct (no notice)

  • Incapacity (e.g., performance issues)

  • Operational requirements (redundancy)

  • Mutual agreement

Process

  • Contact Omnipresent before any termination discussions

  • Submit request via OmniPlatform

  • Omnipresent ensures compliance with local laws

Notice Period

  • <6 months’ service: 1 week

  • 6 months–1 year: 2 weeks

  • 1 year: 4 weeks

Severance Pay

  • Typically 1 week’s salary per year of service

  • Usually applies only in redundancy cases


9. Invoice Schedule

Initial Fees

  • Setup Fees: Triggered when Terms are signed

  • Deposit: Due when the contract is ready for signing

  • Initial Salary Prepayment: Invoiced on employment start date

Monthly Invoicing

  • Invoiced monthly in arrears after payroll completion

  • Includes:

    • Labour cost

    • Omnipresent service fee

    • FX fees and deposit insurance (if applicable)


10. Get Started with Omnipresent

Omnipresent simplifies global hiring through compliant contracts, payroll, benefits, and HR support. Hire in South Africa with confidence and ease.

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