The Hardest Market · South Africa
South Africa's HR data
The rules and costs of employing people in South Africa (Johannesburg), from official sources, in English and Japanese.
On R700,000 a year, the employer's total cost is R709,125 a year, 1.01 times the salary, including employer contributions: Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL). The employee takes home R528,842 a year after contributions and income tax. Statutory annual leave: 21 consecutive days (15 working days). Notice of dismissal: 1-4 weeks by service.
Employment rules
| Statutory annual leave | 21 consecutive days (15 working days) |
|---|---|
| Public holidays (2026) | 14 days |
| Notice of dismissal | 1-4 weeks by service |
| Severance required by law | Retrenchment: 1 week/year of service |
| Typical negotiated exit | No official benchmark |
| Probation | Not statutory; reasonable length set in advance |
| Working hours | 45 h/week, overtime max 10 h/week |
| How hard is dismissal? | Hard: fair reason and procedure from day one (CCMA) |
Employer contributions
| Unemployment Insurance Fund (UIF, employer) | 1% |
|---|---|
| Skills Development Levy (SDL) | 1% |
Employee contributions
| Unemployment Insurance Fund (UIF, employee) | 1% |
|---|
Take-home pay and employer cost by annual salary
| Annual salary | Employee contributions | Income tax | Take-home | Employer cost |
|---|---|---|---|---|
| R400,000 | R2,125 | R67,417 | R330,458 | R406,125 |
| R700,000 | R2,125 | R169,033 | R528,842 | R709,125 |
| R1,000,000 | R2,125 | R288,293 | R709,582 | R1,012,125 |
| R1,500,000 | R2,125 | R493,293 | R1,004,582 | R1,517,125 |
Employee in Johannesburg, South African tax resident and a South African national (no expatriate arrangement), aged under 65, single with no dependants, salary only paid evenly as monthly pay (no bonus, 13th cheque, allowances or fringe benefits), tax year 2026/27 (1 March 2026 to 28 February 2027, which SARS calls the 2027 year of assessment). Income tax at the national rates less the primary rebate only; South Africa has no provincial or municipal income tax. Not a member of a medical scheme and no retirement-fund contributions (both common in white-collar packages and both reduce tax; not modelled). Employee and employer each pay 1% Unemployment Insurance Fund contributions up to the earnings ceiling; employer pays the 1% Skills Development Levy (payroll over R500,000 a year).
Questions
How much does it cost to employ someone in South Africa?
On R700,000 a year, the employer's total cost is R709,125 a year, 1.01 times the salary, including employer contributions: Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL). The employee takes home R528,842 a year after contributions and income tax.
How much annual leave do employees get in South Africa?
Statutory annual leave is 21 consecutive days (15 working days). There are 14 public holidays in 2026.
How much notice is required to dismiss an employee in South Africa?
Notice of dismissal: 1-4 weeks by service. Severance required by law: Retrenchment: 1 week/year of service.
How hard is it to dismiss an employee in South Africa?
Hard: fair reason and procedure from day one (CCMA).
How long is probation in South Africa?
Not statutory; reasonable length set in advance.
What are the legal working hours in South Africa?
45 h/week, overtime max 10 h/week.