Table of Contents
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: less than 24 hours*
Payroll Frequency: Monthly
*Once we receive the relevant documents from the employee, the contract is approved by all parties, the deposit (if applicable) is paid, Omnipresent can onboard the employee within 24 hours.
3. Benefits
Types of Benefits Offered
Mandatory benefits:
Workers’ Compensation
Unemployment Insurance
Supplementary:
Health Insurance (via SafetyWing)
Dental & Vision Coverage
Travel Insurance
Healthcare
Medical benefits are provided through the state health system in South Africa. The level of care is not considered sufficient. It is extremely common for employers in South Africa to provide supplementary Health Insurance. Most employees will expect this supplementary benefit.
Omnipresent offers supplementary Health Insurance through our partner SafetyWing. There are 2 plans covering emergency room care, hospital stays, surgeries, prescription medications, lab tests and diagnostic studies in the hospital. The premium plan includes dental and vision. Dependents can be added on request.
In addition, employees are covered for travel insurance through SafetyWing when on plan.
Retirement
Omnipresent is looking closely at a solution for supplementary Retirement Benefits in South Africa as this is a highly sought after. In lieu of this benefit, we recommend an allowance above salary that employees may use to personally invest.
4. Employment Contracts
Contract Types
We offer indefinite, fixed-term, and part-time contracts in South Africa.
Contract Requirements
Written employment contracts are mandatory and should outline the terms and conditions of employment and provide clarity for both employers and employees. Omnipresent ensures that all necessary key terms are included in the employment contracts we provide.
Language: English
Signature: Simple electronic signature
Backdating: Not possible as per Omnipresent’s policy
Contract Customisation
We provide optional clauses for customisation when adding an employee to our platform. This allows you to tailor certain contract aspects, such as unlimited time off or extra-legal sick days.
However, certain contract elements cannot be customised due to compliance risks or Omnipresent's policy. Examples include overtime, restrictive covenants, and stylistic changes. Please see here the full customisation policy.
Probation Period
During the probation period, employers evaluate an employee's suitability for the role they have been hired for. It gives the employer an opportunity to assess their performance and determine if they are a good fit for the company. We believe that this process benefits both the employer and the employee.
Here are some key points to know about the probation period:
The duration of the probationary period should be in accordance with the job's specific requirements and the time needed to evaluate the employee's suitability. Typically, this period lasts between 3 and 6 months as per common practice.
Please note, as a rule, we always include the probation period in our employment contracts, and that the only exception to our policy is in the case of a transfer of the employment relationship.
5. Onboarding
Timeline
The onboarding steps involved are: Platform Setup, Right-to-Work Check, Employment Contract, Benefits, and Payroll enrolment. Once we receive the relevant documents from the employee, the Framework Agreement and the Employment Contract are approved by all parties, and the deposit (if applicable) is settled, Omnipresent can onboard the employee within just 24 hours.
This timeline does not include exceptions such as visas and medical background checks.
Registration & Approvals
In South Africa, there is no requirement for local registration, and the employment contract can be signed as close as 24 hours before the start date.
Immigration & Visas
We currently don't offer visa support in South Africa via our own entity. If needed, you can contact us since we are able to offer visas for employees on the entity of our local partner.
Right-to-Work Verification
Employers must carry out right to work (RTW) checks on all prospective
employees before they are employed. Employees are required to provide an identification document, which can be in the form of a birth certificate, South African ID document, or a passport.
When moving your employees from another EOR to Omnipresent
If the employee has previously worked for you, whether in another country or through another EOR provider, we can recognise their length of service. This recognition of seniority will need to be mentioned in the employment contract.
6. Leaves
Annual Leave
South Africa offers a minimum of 15 working days paid annual leave, excluding public holidays.
Annual Leave Carryover
Annual leave not taken during an annual leave cycle is automatically carried over to the next annual leave cycle, unless there exists any agreement to the contrary. Should the annual leave be carried over from one cycle to the next, and the employee has still not taken his/her annual leave from the previous cycle within six months of the new cycle, then the employee can demand to take that annual leave from the previous cycle, and the employer may not refuse such permission.
Maternity Leave
Maternity leave in South Africa typically spans a period of four months (16 weeks), starting four weeks prior to the expected due date of birth and extending for at least six weeks after the birth of the child.
It is important to note that maternity leave is generally unpaid, unless there is a different arrangement agreed upon by both the employer and the employee.
Employers are prohibited from dismissing or discriminating against employees because of pregnancy or maternity leave. Women are also entitled to breastfeeding breaks during working hours for up to 1 hour per day for the first 6 months after birth.
Paternity Leave
Employees are entitled to a total of 10 consecutive days of unpaid paternity leave.
The employee must have been employed for at least four months before the leave. Paternity leave can be taken anytime from the birth of the child up to six months thereafter. Employees must notify their employer in advance of when they intend to take paternity leave, usually at least one week before the leave begins.
Parental Leave
Employees are entitled to 3 days of paid leave per year if they have been employed for at least 4 months and working at least 4 days per week. This leave can be taken for various family responsibilities.
Sick Leave
Employees are entitled to 1 day of paid sick leave for every 26 days worked within the initial four months of employment. After this period, they become eligible for up to 6 weeks of paid sick leave (or 30 days for those on a five-day workweek) over a 36-month leave cycle. Sick leave is paid by the employer at the employee’s normal wage or salary.
Employers can require a medical certificate for sick leave absences from the 3rd day of illness. The certificate must be from a registered medical practitioner.
Public Holidays
South Africa currently has 12 regular holidays:
1 January (New Year’s Day)
21 March (Human Rights Day)
Good Friday
Family Day (Easter Monday)
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 or Reconciliation)
25 December (Christmas Day)
26 December (Day of Goodwill).
7. Payroll & Taxes
Payroll Cycle
The payroll cycle in South Africa is monthly.
Payroll runs from the 1st of the month to the end of the month.
Payroll cut-off date is 15th of the month (any changes to payroll or variables must be shared with Omnipresent by this date).
Payment date is the last working day of the month (this is when employees will receive their salary payment).
Extra Payments (Bonus, Commission etc.)
There is no statutory entitlement to bonuses.
Hourly Wage Employees
Omnipresent is unable to accept employees on an hourly wage.
Minimum Wage
The national minimum wage is ZAR 28,79 per hour in 2025.
Standard Work Schedule
The Standard work schedule in South Africa consists of 8 hours per day and 40 hours per week, with the work week running from Monday to Friday.
Employer Costs
The employer costs depend on a variety of employee variables. A guiding number is ~2% of the employee's salary. To get a more detailed estimate based on the employee salary use the OmniCalculator, or contact us for further information.
8. Termination Process
Before proceeding with a termination (including verbal discussion with the employee about the risk of termination) you must first get in touch with Omnipresent. We will then provide guidance on next steps. You can read our full guidance here.
To initiate a termination, you need to submit a termination request through the OmniPlatform after which our relevant teams will assess the case and plan a compliant termination process.
We cannot process termination on the same day as requested.
Involuntary Termination
In South Africa, termination without a justified reason is generally not allowed.
Termination can occur for the following reasons:
Termination without notice for misconduct
Termination due to incapacity, which could be related to poor performance, typically after giving the employee an opportunity to meet performance standards.
Termination due to operational requirements.
Termination by a mutual agreement.
Severance Pay
As a reference, in South Africa, severance pay is typically calculated at a rate of 1 week's pay for each year of service. This compensation is generally granted for redundancy situations and is not typically provided for other forms of dismissal.
Notice Period
Notice periods are determined by the length of an employee's service:
For those with less than 6 months of service, the minimum notice period is 1 week.
Employees who have served between 6 months and 1 year are entitled to a minimum notice period of 2 weeks.
Those with more than 1 year of service have a minimum notice period of 4 weeks.
9. Invoice Schedule
Setup Fees: Once Terms are signed, Omnipresent begins deploying resources for the setup process. Trigger [Employee Details Added]
Deposits: Payable when the local employment contract is ready for signature. The deposit enables Omnipresent to move forward securely to sign the local employment contract with the employee. Trigger [Employee Details Added]
Initial Salary Prepayment: The first month’s estimated labour costs are invoiced on the first day of employment. Trigger [Employment Start Date]
Ongoing monthly Employment Costs and Fees: Thereafter, we invoice monthly in arrears for labour costs - once the final payroll, taxes, insurance, social security contributions, expenses and deductions have been calculated. Each monthly invoice will include our monthly service fee, deposit insurance (if applicable), and an FX fee (if applicable). Trigger [Payroll Date] Typically the last working day of the month, but varies by country.
10. Get Started with Omnipresent
We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey towards hassle-free global employment.