South Africa’s diverse talent and growing economy offer potential, but its labor laws can challenge employers. Omnipresent acts as your Employer of Record (EOR), handling compliance with SARS regulations without a local presence.

We streamline payroll, benefits like 15 days of vacation, and taxes, so you can manage teams in Johannesburg or Cape Town with ease. Our platform delivers a tailored solution for South Africa’s vibrant market.

• Fast, compliant onboarding.
• Contracts in ZAR, fully aligned.
• Guidance on market norms.
• Easy growth with full support.

Employer costs include the Unemployment Insurance Fund, Skills Development Levy (SDL), and Workers' Compensation. Use the OmniCalculator to estimate costs, or contact us for further information.

Income taxes 18% - 45%.

Income tax rates are levied on a progressive scale, with rates ranging from 18% to 45%.

Individuals are required to pay income tax for a tax year if they earn at least the income tax threshold applicable to them for that year based on their age.

Employee Contributions Unemployment Insurance Fund

All employees generally are required to contribute to the Unemployment Insurance Fund (UIF). However, employees employed for less than 24 hours a month are exempt of UIF contributions.

The UIF contribution rate for employees is 1% of their salary.

The maximum amount of employment income paid to an employee upon which contributions for the UIF may be assessed on the employee is known as the maximum earnings ceiling, also known as the maximum contribution limit.

The maximum weekly working time permitted by law is 45 hours.

Overtime laws are complex and can depend on the specific circumstances and the employee.

1 paid sick day for every 26 days worked.

After 6 months, sick leave allowance increases.

Sick leave to be fully funded by the employer. 

Mandatory 6 weeks of unpaid maternity leave after birth.

10 consecutive days of unpaid paternity leave. 

Payment at employer's discretion.

There are other types of leaves.

The entitlement is 21 consecutive days (equal to 15 working days) of paid annual leave.

Severance in South Africa typically includes 1 week’s pay for every 1 year of service. This is typically awarded only for redundancy, not for other dismissals.

Termination without cause is not permitted in South Africa. 

Employees can be dismissed for misconduct, incapacity or redundancy. A formal process must be followed.