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Countries/South Africa/Hiring guide

Middle East & Africa · Hiring guide · 2026

Hiring in South Africa: labour law and payroll

This page is the labour-law and payroll stack for multinational employers hiring in South Africa. It is not a salary survey.

In-country employment is how you run this stack without a South African company.

To hire without incorporating first, use in-country employment in South Africa.

Contracts

Contracts and probation

Written particulars

The BCEA requires written particulars of employment: job, pay, hours, leave, and notice. Issue them on day one.

Probation

Probation is allowed if it is reasonable and used to assess suitability. It does not turn South Africa into an at-will jurisdiction — poor performance still needs a fair process.

Fixed-term

For employees below the earnings threshold, fixed-term use is restricted (justifiable reason, equal treatment). Do not chain short contracts to avoid permanence.

Hours

Working time and overtime

Hours

Ordinary hours generally cap at 45 a week (9 a day on a 5-day week, 8 a day on a 6-day week). Meal intervals and weekly rest are statutory below the earnings threshold.

Overtime

Employees below the BCEA earnings threshold generally receive 1.5× for overtime and 2× for Sunday work unless time off in lieu is agreed. From 1 May 2026 the threshold is R269,600.90 a year.

Leave

At least 21 consecutive days' annual leave on full pay (or one day per 17 days worked). Plus sick leave, family responsibility leave, and parental leave under the BCEA.

Wage floor

Minimum wage, 2026

The national minimum wage is hourly. Statutory employer on-cost is small relative to Europe. These are not market salaries.

RuleFigure
National minimum wageR30.23 per ordinary hour from 1 March 2026
UIF1% employer + 1% employee, each capped at R177.12 / month in 2026
SDL1% of payroll if annual payroll exceeds R500,000
COIDAIndustry assessment tariff on capped earnings

Farm and domestic workers are on the same R30.23 rate. Expanded public works and learnerships have separate figures. Sectoral determinations and bargaining-council agreements can set higher floors. There is no statutory 13th month.

Exit

Terminating and offboarding

Fair reason and fair procedure

The LRA requires both. Conduct, capacity, and operational requirements are the usual buckets. CCMA can award reinstatement or compensation.

Notice

BCEA minimum notice is 1 week (<6 months' service), 2 weeks (6–12 months), or 4 weeks (≥1 year), unless the contract is more generous.

Retrenchment

Section 189 consultation is mandatory for operational dismissals. Skipping consultation is the usual CCMA loss.

Questions

FAQ

What is the 2026 national minimum wage?
R30.23 per ordinary hour from 1 March 2026. Sectoral determinations may be higher.
How much is the employer extra cost?
UIF 1% (capped at R177.12), SDL 1% if payroll exceeds R500,000 a year, and COIDA at an industry tariff. Statutory on-cost is typically a few percent of gross.
Can we dismiss without cause?
No. You need a fair reason and a fair procedure under the LRA. Probation does not remove that duty.
Is a 13th month required?
No. A 13th month is contractual if you put it in the offer.

Other markets

Other hiring guide pages

Reviewed 11 September 2026

This is a hiring briefing for multinational employers, not legal advice. Statutory rates move by city, province, and sector. Confirm the place of work before you issue an offer.

Sources

  • Basic Conditions of Employment Act; Labour Relations Act
  • National Minimum Wage Act amendment — R30.23 from 1 March 2026
  • BCEA earnings threshold from 1 May 2026; UIF / SDL / COIDA rules

Hire in South Africa

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