1.00% - Unemployment
35,253 + 26% taxable income above 195,850 - 195,850 - 305,850
305,850 + 31% taxable income above 305,850 - 305,850 - 423,300
100,263 + 36% taxable income above 423,300 - 423,300 - 555,600
147,891 + 39% taxable income above 555,600 - 555,600 - 708,310
207,448 + 41% taxable income above 708,310 - 708,310 - 1,500,000
532,041 + 45% taxable income above 1,500,000 - Above 1,500,000
Typically, minimum wage in South Africa is 20 ZAR an hour. The minimum wage is subject to change based on the hours worked. In addition, there are some types of work where the minimum wage is 15 ZAR per hour.
Paid Time Off
The minimum mandatory annual leave in South Africa is 15 workdays and it is accrued monthly (1.25 days per month)
In South Africa, sick leave is based on a 36-month cycle.
For the first 6 months of employment, the employee is entitled to 1 day of sick leave for every 26 days worked. From the first day of the 7th month, the employee receives:
· 30 days if they work a 5-day work week or
· 36 days if they work a 6-day work week
· 33 days if an employee works Monday- Friday and a Saturday every 2 weeks, but does not apply to employees who work less than 24 hours a month. In this case, sick leave would need to be determined when negotiation the employment contact.
If the employee is absent for more than 2 consecutive days, they must produce a medical certificate. However, if the employee is sick from Friday to Monday, this is not considered consecutive days of sick leave, and are not obligated to produce a medical certificate.
In South Africa, a woman is entitled to 4 consecutive months of maternity leave. This entitlement can begin from at least 4 weeks before the birth. However, If the woman is not able to work due to her medical condition, it is possible that the leave be taken earlier.
The woman cannot return to work for at least 6 weeks after birth, unless otherwise approved by a doctor.
The employer is not obligated to pay the employee for maternity leave. Instead, a claim can be made from the Maternity Benefit Fund if contributions have been made to the Unemployment Insurance Fund (UIF). The maximum the employee is able to receive from this benefit is 60% of their regular pay and are paid for 121 days.
Paternity falls under Parental leave.
Fathers are entitled to 10 days of parental leave, paid by the UIF at a rate of 66% of the regular pay. For the father to exercise parental leave, they must inform their employer in writing at least one month before the expected due date of the child. This leave also applies to adoptive fathers.
At the employer’s discretion, an employee who is in school can take 2 paid days per subject per year with a maximum of 10 days a year. After the 10 days, any additional leave for the purpose of studying would have to be taken as unpaid leave.
There are 13 public holidays in South Africa.
If an employee is injured at work and take more than 4 days of leave due to the injury, they are entitled to 75% of their regular pay for up to 3 months. After 3 months of leave, the employee must claim compensation from the Compensation fund and receives 75% of their normal pay.
In addition, for the first 3 months, the employer is able to request payment from the Compensation Fund.
15% standard rate.
The payroll cycle can be done monthly, weekly, or bi-weekly.
27.5% of workers wage is contributed to the pension funds.
In South Africa, there are no social security contributions.
In South Africa, the amount of the contribution due by an employee and employer to the Unemployment Insurance Fund (UIF) is 1% of the remuneration. The maximum earnings ceiling is 14,872 ZAR per month or 178,464 ZAR annually. For employees who earn more than this amount, the contribution is calculated using the maximum earnings ceiling amount. The maximum contribution which can be deducted, for employees who earn more than 14,872 ZAR per month, is 148.72 ZAR per month.
There is no set pay date in South Africa, this typically is something that the employee and employer come to an agreement on.
According to the Basic Conditions of Employment Act (BCEA), the maximum normal working time allowed is 45 hours weekly.
Overtime is voluntary and may only be worked if there is an agreement set between the employer and employee. If agreed on, overtime is paid at 150% of the normal rate. For Sunday and public holidays, the rate for overtime is 200% the normal rate.
In South Africa, employers are not able to terminate an employee at will, but can be dismissed for the following:
- Misconduct– usually given without notice
- Incapacity (health or poor performance)- termination due to poor performance is usually given after the employee receives an opportunity to meet his or her performance standards.
- Operational requirements of the company
When the employee and employer would like to separate amicably, a separation agreement is common.
Both the employee and employer must follow the same notice period based on the length of the employment relationship:
- 6 months or less – 1 weeks’ notice
- 6- less than 1 year – 2 weeks’ notice
- More than 1 year- 4 weeks’ notice
For farm and domestic employees, the above notice periods must be followed and may not be shortened.
It is possible, however, to shorten the notice of 4 weeks to no less than 2 if stated under a collective bargaining agreement for other types of employees.
If the employee is terminated due to poor performance or misconduct, the employee is not entitled to pay severance pay.
If the employee is terminated due to operational requirements, the company is obligated to pay the employee one week’s severance pay for ever year employed.