Expand into South Africa with Mauve's EOR, payroll, and HR solutions

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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

Effective 1st March 2026, the minimum wage is set at ZAR 30.23 per ordinary hour worked. The minimum wage applies to all workers across all sectors, with the following exceptions:

• Worker employed on expanded works programme are entitled to ZAR 16.62 per hour; and
• Learners who have concluded learnership agreements contemplated in section 17 of the Skills Development Act 1998 are entitled to the allowances as determined and published by the Ministry of Labour.

Employee Tax

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’ paid 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 paid by the Unemployment Insurance Fund (UIF), not by the employer.

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 (EOR) solution, clients and their international workers benefit from Mauve’s Global Master Insurance Programme—a market-leading, unified corporate insurance system that links all Mauve entities to two preferred providers. As part of our global Employer of Record services, this programme ensures that companies expanding globally through our EOR service have access to reliable and compliant insurance coverage for overseas employees.

The insurance provides comprehensive coverage in international locations via a combination of the master policy and jurisdiction-specific local policies where required by law. This ensures full compliance and protection in line with local employment regulations—key to any international Employer of Record solution.

The policies include:

• Employer’s Liability and Public Liability – £10,000,000 combined limit.
• Professional Indemnity – £5,000,000 limit.
• Worker’s Compensation – Limit varies depending on the country of employment.

For detailed information about statutory and recommended EOR insurance coverage in your chosen country, get in touch with Mauve’s global compliance team.

An Employer of Record (EOR) in South Africa enables eligible businesses to hire employees without establishing their own local legal entity. The EOR acts as the legal employer and manages employment contracts, payroll, applicable statutory contributions, and employment administration in line with South African requirements.

This helps international companies build a local workforce while reducing the administrative complexity of entering the market.

Global payroll services help businesses manage salary payments, PAYE income tax deductions, statutory contributions, and payroll reporting in South Africa. Employers may need to account for the Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL), where applicable.

Outsourcing payroll can reduce administrative workloads, improve payroll accuracy, and support compliance with local tax and employment requirements.

Yes. Eligible foreign companies can use an Employer of Record (EOR) to hire employees in South Africa without establishing their own subsidiary or branch, subject to applicable legal and regulatory requirements.

This can provide a more flexible route into the South African market, allowing businesses to recruit local talent before committing to a permanent local entity.

Businesses expanding into South Africa can outsource HR services such as employment contract administration, employee onboarding, payroll management, statutory contribution administration, HR policy development, salary benchmarking, benefits administration, and employment compliance assessments.

External HR specialists help businesses understand local employment requirements, manage administrative responsibilities, and support employees throughout the employment lifecycle.

South Africa offers international businesses access to a diverse economy, established commercial infrastructure, skilled professionals, and opportunities across industries such as financial services, technology, manufacturing, mining, and logistics.

Its position within the African market can also make it a strategic location for companies looking to establish regional operations or expand into other African countries.

Employers in South Africa must comply with applicable employment legislation, including the Labour Relations Act, Basic Conditions of Employment Act, and National Minimum Wage Act. Depending on the business and employee circumstances, employers may also need to manage PAYE income tax, Unemployment Insurance Fund (UIF) contributions, and the Skills Development Levy (SDL).

These requirements govern areas such as employment conditions, workplace rights, payroll deductions, and statutory reporting. Understanding the relevant obligations helps businesses establish compliant employment practices when hiring in South Africa.

Foreign nationals generally need appropriate work authorisation to work legally in South Africa. The relevant visa route may include a Critical Skills Work Visa, General Work Visa, or Intra-Company Transfer Work Visa, depending on the employee’s circumstances and the applicable immigration requirements.

Employers should confirm the appropriate visa category and ensure the employee has the necessary authorisation before starting work. Immigration requirements can vary according to the role, qualifications, and employment arrangement.

Mauve Group provides Employer of Record (EOR), Global Payroll, Salary Benchmarking, Global HR Consultancy, Compliance Assessments, and Visa & Immigration support to businesses expanding into South Africa.

Our solutions help companies hire employees, administer payroll, understand local compensation, manage HR responsibilities, and navigate employment and immigration requirements. Whether you’re recruiting your first South African employee or growing an established team, Mauve Group helps simplify workforce management and support your expansion into the South African market.