One Pan-African team
A single Pan-African payroll team configures and runs your payroll — consistent service, wherever your people are.
Popay Payroll · South Africa PopayPayroll
Payroll in South Africa, handled the local way.
Statutory contributions, compliant payslips, local contracts and leave — configured to local law inside our own engine.
One engine, all of Africa. South Africa payroll rules run natively inside our own gross-to-net engine — monitored and kept current by our Pan-African team, not stitched from third-party aggregators.
Talk to our African payroll team No commitment — a working conversation about your team in South Africa.
ZA
ZA · payroll across the continent
Understand HR in South Africa
Everything South Africa payroll asks of an employer — in one place.
The full local picture for South Africa: statutory contributions and the rules our engine runs natively — maintained by our Pan-African legislation team.
01 · At a glance
South Africa payroll, by the numbers
The fixed parameters every South Africa payroll run starts from.
CAPITAL
Pretoria (administrative) · Cape Town (legislative) · Bloemfontein (judicial)
CURRENCY
South African Rand (ZAR, R)
OFFICIAL LANGUAGE
12 official languages; English is widely used for business and payroll purposes
STATUTORY AUTHORITIES
SARS — South African Revenue Service (PAYE / UIF / SDL) · Department of Employment and Labour (UIF declarations, COIDA)
INCOME TAX YEAR
1 March – 28/29 February
PAYROLL CYCLE
Monthly
MONTHLY STATUTORY DEADLINE
EMP201 (PAYE, UIF, SDL) – by the 7th of the following month; EMP501 reconciliation (IRP5/IT3(a)) – 1 April to 31 May; interim EMP501 – 21 September to 31 October.
Minimum wage
R30.23/hour; farm & domestic workers – R30.23; Expanded Public Works Programme workers – R16.62; learners – Schedule 2 allowances. Higher sectoral minima apply in Contract Cleaning and Wholesale & Retail.
Ordinary Working Week
Maximum 45 hours/week; 9 hours/day (5-day week) or 8 hours/day (>5 days). Meal break: 1 hour after 5 hours (30 minutes by agreement). Daily rest: 12 hours; weekly rest: 36 hours, normally including Sunday.
OVERTIME
Voluntary by agreement; 1.5× normal rate, or 2× on Sundays/public holidays. Sunday rate is 1.5× for employees who normally work Sundays. Limited to 3 hours/day and 10 hours/week. Exemptions apply to certain senior employees and those above the BCEA earnings threshold.
MINIMUM WORKING AGE/ RETIREMENT AGE
15 (exceptions apply for performing arts with a permit); 15–18-year-olds are protected from hazardous or inappropriate work/ No statutory retirement age; set by employer or retirement fund
MAIN LABOUR LAW
Basic Conditions of Employment Act · Labour Relations Act · Employment Equity Act · National Minimum Wage Act 9 of 2018 · Unemployment Insurance Act and Unemployment Insurance Contributions Act · Skills Development Act and Skills Development Levies Act · Compensation for Occupational Injuries and Diseases Act · Occupational Health and Safety Act.
02 · Statutory obligations & contributions
Social contributions in South Africa
Statutory contributions declared by the employer, each scheme with its own rate,
| Contribution | Employer | Employee | Basis & notes |
|---|---|---|---|
| UIF — Unemployment Insurance Fund | 1% | 1% | Of remuneration (capped at R177.12) |
| SDL — Skills Development Levy | 1% | 0% | Of total remuneration paid to employees. For annual payroll exceeding R500,000 |
| COIDA — Compensation for Occupational Injuries and Diseases | Risk-based rate | 0% | Varies by sector and job risk |
| ETI — Employment Tax Incentive | Reduces the employer's PAYE liability | 0% | Not a deduction — an incentive that lowers the PAYE payable by employers who hire young, less-experienced workers |
03 · Income tax brackets
The employment income tax withheld for SARS
In South Africa, progressive income tax brackets are applied to your taxable income (gross taxable earnings, less any retirement fund contributions), and the resulting tax is reduced by age-based rebates and medical scheme fees tax credits.
Tax thresholds
| Age group | Tax thresholds |
|---|---|
| Under 65 | R99 000 |
| 65 and older | R153 250 |
| 75 and older | R171 300 |
Tax rates on annual taxable income
| Tax Income | Tax |
|---|---|
| R0 – R245,100 | 18% of taxable income |
| R245,101 – R383,100 | R44,118 + 26% of the amount above R245,100 |
| R383,101 – R530,200 | R79,998 + 31% of the amount above R383,100 |
| R530,201 – R695,800 | R125,599 + 36% of the amount above R530,200 |
| R695,801 – R887,000 | R185,215 + 39% of the amount above R695,800 |
| R887,001 – R1,878,600 | R259,783 + 41% of the amount above R887,000 |
| Above R1,878,600 | R666,339 + 45% of the amount above R1,878,600 |
Annual rebates deducted from tax payable
| Rebate | Amount |
|---|---|
| Primary rebate (all taxpayers) | R17,820 |
| Secondary rebate (taxpayers 65 and older) | R9,765 |
| Tertiary rebate (taxpayers 75 and older) | R3,249 |
Medical scheme fees tax credit
| Beneficiary | Monthly credit |
|---|---|
| Taxpayer (main member) | R376 |
| First dependant | R376 |
| Each additional dependant | R254 |
04 · Employment contracts & other terms
The contract types and the formalities that frame them
Contract types
Full-time · Part-time (paid for hours worked, with benefits on a pro-rata basis)
Notice period
1 week (employed 6 months or less) · 2 weeks (more than 6 months but not more than 1 year) · 4 weeks (1 year or more, or farm/domestic workers employed more than 6 months)
Severance pay
1 week’s remuneration per completed year of service for retrenchment due to operational requirements (minimum 1 year of service).
Termination calculations
1 week’s remuneration per completed year of service for retrenchment (minimum 1 year’s service). Final settlement includes salary due, unused leave and notice pay where applicable.
End-of-year bonus
Not legally mandatory; typically discretionary. Common: 13th cheque (~1 month’s salary), performance/production bonuses. Public-sector employees may receive a pro-rated service bonus.
Retirement benefit
Lump sum: first R550,000 tax-free; annuity taxed as income. Two-pot system: 1/3 accessible savings (1 withdrawal/year, minimum R2,000); 2/3 reserved for retirement. From March 2026: full cash-out threshold increased to R360,000 retirement interest; contribution deduction cap: R430,000/year.
05 · Leave & employee rights
The law sets the floor; contracts and collective agreements can add to it. Below are the statutory minimums your accruals must track.
Annual leave
21 consecutive days per 12-month cycle (excluding public holidays), or by agreement, 1 day per 17 days worked or 1 hour per 17 hours worked. Accrues from employment start and must be taken within 6 months after the leave cycle.
Sick leave
30 days per 3-year cycle (5-day week) or 36 days (6-day week). First 6 months: 1 day per 26 days worked. Medical certificate required after 2 consecutive days or more than 2 absences in 8 weeks.
Maternity leave
4 months unpaid, starting up to 4 weeks before the expected birth. UIF benefits: up to 66% of earnings, subject to the maximum threshold.
Parental leave
10 consecutive days unpaid for birth or adoption. UIF benefits may partially replace lost income.
Adoption leave
10 consecutive weeks unpaid for one adoptive parent of a child under 2. The other parent may take 10 days’ parental leave. UIF benefits may be claimed.
Commissioning parental leave
10 consecutive weeks unpaid for one parent in a surrogacy arrangement. UIF benefits may be claimed.
Family responsibility leave
3 days/year after 4 months’ employment, for employees working at least 4 days/week. Covers childbirth, a child’s illness or the death of a close family member.
06 · Unions & collective agreements
Affiliated unions negotiate wage scales and union dues that your payroll must calculate, deduct and remit.
A poorly applied collective agreement can lead to a dispute before the Labour Court.
COSATU — Congress of South African Trade Unions
The largest federation, with 21 affiliated unions and around 2.2 million members; affiliated to the ITUC. Leading voice in national social dialogue (NEDLAC) and sector-level bargaining, influencing wage scales and collective agreements.
FEDUSA — Federation of Unions of South Africa
The second-largest national federation (founded 1997); affiliated to the ITUC. Represents workers across multiple sectors in collective bargaining.
SAFTU — South African Federation of Trade Unions
An increasingly prominent federation in industrial action and wage negotiations.
Native African payroll — one accountable partner.
Compliant payslips
Statutory contributions, income tax and net pay computed and presented on a payslip built for local requirements.
We own the gross-to-net engine
Local rules are configured natively inside our engine, not stitched from third-party aggregators — one accountable system, one contract.
Talk to our Pan-African payroll team.
Tell us about your team in South Africa and we'll map your options — payroll, contracts and local compliance — plainly and without commitment.
South Africa payroll, answered
Do you run South Africa payroll on your own engine?
Yes. South Africa statutory rules are configured natively inside our own gross-to-net engine and maintained by our Pan-African legislation team.
Can you handle payslips and leave locally?
Yes — compliant payslips and statutory leave are all part of the service.
Popay payroll across Africa
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