Payroll in South Africa
What tax considerations are there?
In South Africa there is a residency-based taxation system, meaning permanent or temporary tax residents have to pay tax on their global income. Employees are required to pay social security contributions and income tax, which is calculated depending on a number of factors, and there is also corporate tax and taxes on assets and wealth to consider.
Provisional tax also exists in South Africa and requires taxpayers to pay at least two advance amounts of tax throughout the year of assessment based on estimates. All companies are liable to pay this as well as those who receive income other than a salary.
HR in South Africa
What are the regular working hours in South Africa?
The usual working hours in South Africa are Mon-Fri 9am to 5pm and employees must not work more than 12 hours a day. Overtime is available up to 10 extra hours a week, paid at time and a half, and double time for Sundays where employees do not usually work this day.
In South Africa, grounds for termination can include misconduct, ill health incapacity, poor performance incapacity or operational requirements of the employer – for instance redundancy. The termination of employment must be proven to be fair according to the LRA (Labour Relations Act).