South Africa

• New Year’s Day
• New Year Holiday
• Human Right’s Day
• Good Friday
• Family Day
• Freedom Day
• Workers Day
• Youth Day
• National Women’s Day
• Heritage Day
• Heritage Day Holiday
• Day of Reconciliation
• Christmas Day.

Working Hours

In South Africa, employees can work no more than 45 hours per week.

Daily limits are nine hours per day if an employee works up to five days a week, or eight hours if they work more than five days a week.

Minimum Wage

From 1st March 2024, the minimum wage is ZAR 27.58 per ordinary hour worked, approximately ZAR 4,779.38 per month for workers on a 40-hour week and approximately ZAR 5,377.29 per month for workers on a 45-hour week.

Employee Tax

Annual income	Tax rate
Up to ZAR 237,100	18%
ZAR 237,101 - 370,500	26%
ZAR 370,501 - 512,800	31%
ZAR 512,801 - 673,000	36%
ZAR 673,001 - 857,900	39%
ZAR 857,901 - 1,817,000	41%
More than ZAR 1,817,001	45%
Unemployment insurance contribution	1%

Bonuses

Both contractual and discretionary bonuses are a common feature of employment contract in South Africa.

In most cases an employment contract must be signed before the Department of Home Affairs will issue a work permit. The employment contract must contain the following information:

• The employer’s full details.
• The occupation or job description.
• The salary and how it will be paid.
• Salary deductions.
• Working hours.
• Leave entitlements.
• Notice period for termination of the contract.
• The documents which form part of the employment contract.

Fixed-term contracts, project contracts, part-time employment, casual contracts, and indefinite contracts are all permitted in South Africa.

Annual Leave

In South Africa, employees are entitled to 21 consecutive days’ annual leave. By agreement, annual leave may be calculated at one day for every 17 days worked or one hour for every 17 hours worked.

As the entitlement is consecutive, weekends are included when calculating the annual leave entitlement. Therefore 21 days of annual leave equals 15 working days and six weekend days.

Sick Leave

Employees are entitled to 30 days of sick leave in every 36 month period. Sick leave is fully paid by the employer. Sick pay may be reduced, by mutual agreement, if the number of days of sick leave is increased. A worker is then entitled to 75% of their wages for the sick leave period.

Parental Leave

In South Africa, maternity leave of 4 months’ unpaid leave is offered.

An employee is entitled to 10 days of parental leave upon the birth of the employee’s child. Parental leave may also be applicable in circumstances where an employee legally adopts a child. Female employers who give birth to a child do not qualify for parental leave due to their entitlement to maternity leave.

Parental leave is unpaid, but the employee may be able to submit a claim to the Unemployment Insurance Fund.

Termination Process

A contract of employment can be terminated, in writing, on certain grounds. These include:

• Contract expiry
• Completion of work
• Notice issued by either party
• Summary termination in the event of a material breach by either party
• By mutual agreement
• By insolvency of the employer

A contract may not be terminated in the absence of a justified reason.

The Labour Relations Act expressly recognises misconduct, poor performance, and operational requirements as acceptable grounds for termination.

Both parties must give notice of termination in line with legal requirements.

Severance Pay

A worker who is dismissed for reasons based on the employer’s operational requirements or business insolvency is entitled to severance pay at the rate of one week's pay for each completed year of service.

The amount of severance pay may be increased by mutual agreement between the employer and worker.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.