Employing in South Africa
Payroll Services South Africa
Optimise your business’s potential by choosing Outsourced Payroll in South Africa, through PeoplePay Global.
Our team of experts will ensure accurate and reliable solutions for managing your payroll, from employee salaries, tax deductions and statutory contributions. With up-to-date knowledge of South African Payroll Regulations, we can support you in every step of the process, including PAYE (Pay As You Earn), UIF (Unemployment Insurance Fund) and SDL (Skills Development Levy) Requirements.
Outsource your payroll process today to minimise payment risks and allow your business to grow with confidence.
South African Payroll Services
At PeoplePay Global, we are committed to providing professional and reliable Payroll Services in South Africa, to ensure simple solutions to managing employee salaries. Our team of experts are kept up-to-date with South African Payroll Regulations to ensure full compliance and assure your business that the payroll cycle is completed in a timely and accurate manner.
We provide solutions to every step of the payroll process, including PAYE (Pay As You Earn) Regulations, UIF (Unemployment Insurance Fund) Requirements and SDL (Skills Development Levy) Requirements, to support both you and your employees. From salary calculations, statutory filings and monthly reporting, we are here to reduce administrative burdens and ensure the entire process is handled with precision and ease.
Our team will support each business, from local businesses to multinational organisations operating in South Africa, ensuring scalable payroll solutions are tailored to your business and workforce needs. With strict data protection measures, we will ensure safeguarding for all of your employees, giving you the peace of mind that your South African Payroll is being handled with efficiency and allowing you more time to focus on company growth and productivity.
In 2025, the National Minimum Wage rate increased to ZAR 28,79 per hour.
In South Africa, individual tax rates and thresholds vary depending on an employee’s salary. The tax rates in 2025 are:
Income (ZAR) | Tax on column 1 (ZAR) | Tax on excess (%) |
0 to 237,100 | 0 | 18 |
237,101 to 370,500 | 42,678 | 26 |
370,501 to 512,800 | 77,362 | 31 |
512,801 to 673,000 | 121,475 | 36 |
673,001 to 857,900 | 179,147 | 39 |
857,901 to 1,817,000 | 251,258 | 41 |
1,817,001 and above | 644,489 | 45 |
Employers typically contribute between 5% and 15% to an employee’s pension.
South Africa operates the Government Employee’s Pension Fund (GEPF) which both the employer and employee contributes to. All eligible GEPF members pay 7.5% of their pensionable salary towards the Fund, while employers pay 13%.
Working hours in South Africa are governed by the Basic Conditions of Employment Act, which states:
- The maximum weekly hours is 45 hours
- The daily maximum hours is 9 hours per day (5-day work week), or 8 hours per day (more than 5 days)
- Overtime is capped at 10 hours per week, and cannot exceed 12 hours per week including overtime
- Overtime is compensated at 1.5 times the employee’s wage, and double for Sundays and public holidays
Employee’s leave consists of several types:
- Statutory time off or paid leave, which is 21 days per year for full-time employees
- Public holidays (there are 12 public holidays in South Africa)
- Maternity, Paternity and Parental leave
- Sick leave
In South Africa, employment termination must adhere to the Labour Relations Act and requires both substantive and procedural fairness. Reasons for dismissal could include:
- Misconduct
- Operational requirements/redundancy
- Incapacity
Minimum notice periods are required, typically these are:
- 1 week for 6 months of service or less
- 2 weeks for between 6 and 12 months of service
- 4 weeks for more than 1 year of service
