In South Africa, the following must be adhered to under strict local legislation:

• Skills Development Levy (SDL)
• Unemployment Insurance Fund (UIF)
• Minimum Wage ZAR 21.69 per hour

How does payroll work in South Africa?

All Employers in South Africa are required to contribute to the Skills Development Levy (SDL) and Unemployment Insurance Fund (UIF). Both schemes require a 1% contribution from the employer. The SDL was founded to fund education and training for the workforce in South Africa.

What are the general employment rules?

Every employee is entitled to 21 days of consecutive leave in each cycle. These 3 weeks are fully paid and are equivalent to 15 working days based on a 5-day working week or 18 working days based on a 6-day working week. Employees are also entitled to 12 public holidays throughout the year, fully-paid.

What about dismissing an employee?

There are minimum notice periods based on the employee’s length of service. For up to six months of employment, only 1 week is required. For six months to one year’s service, 2 weeks are required. For more than one year’s service, a minimum of 4 weeks are required. In addition to the notice period, a minimum of one week’s pay per one year of service will be required as remuneration for a standard dismissal. In some instances no severance pay is required.