Employment in South Africa is governed by the Basic Conditions of Employment Act (BCEA), the Labour Relations Act (LRA) and the National Minimum Wage Act, with bargaining council agreements and sectoral determinations adding rules in some industries. Here is what employers need to know about leave, pay, tax and ending employment.
The BCEA sets minimum leave for employees who work more than 24 hours a month. Employers pay annual, sick and family responsibility leave, while maternity and parental leave are unpaid by the employer unless the contract says otherwise. Employees can claim benefits from the Unemployment Insurance Fund (UIF) instead.
21 consecutive days a year, which is 15 working days for a 5 day week. Alternatively, 1 day for every 17 days worked, or 1 hour for every 17 hours worked.
Paid sick leave equal to 6 weeks of normal working days over each 36 month cycle. During the first 6 months, 1 day for every 26 days worked.
At least 4 consecutive months, starting up to 4 weeks before the expected birth. No work is allowed for 6 weeks after the birth unless a doctor or midwife certifies it is safe.
Paid leave a year for the birth or illness of a child or the death of a close family member, for employees with 4 months' service who work at least 4 days a week.
The BCEA gives 10 consecutive days of parental leave to a parent who is not taking maternity leave, and 10 weeks of adoption or commissioning parental leave. In October 2025 the Constitutional Court ruled that these different entitlements unfairly discriminated between parents, and ordered that, until Parliament amends the law, parents can share the combined 4 months and 10 days of leave between them as they choose.
Set up each South African leave type in IceHrm with its own accrual, carry forward and approval rules, including a sick leave balance that runs over a 36 month cycle. Employees see their live balance before they apply, and managers see who is away on a shared team calendar. Leave management →
The Minister of Employment and Labour reviews the national minimum wage every year on the recommendation of the National Minimum Wage Commission, usually with effect from 1 March.
For each ordinary hour worked, from 1 March 2026, including farm and domestic workers. Lower rates apply to some public works programmes.
Up to 9 hours a day for a 5 day week, or 8 hours a day for a longer week.
Overtime must be agreed, and is capped at 3 hours a day and 10 hours a week.
Work on a Sunday is paid at double the normal rate, or 1.5 times for employees who ordinarily work on Sundays. Work on a public holiday is paid at least double. Employees earning above the BCEA earnings threshold, and senior managers, are excluded from the hours and overtime rules.
Capture attendance, overtime and Sunday hours in IceHrm and feed them straight into payroll, so premiums reflect what was actually worked. Time & attendance →
Employers deduct Pay-As-You-Earn (PAYE) from salaries, declare and pay it to SARS monthly on the EMP201, reconcile twice a year on the EMP501, and issue IRP5 tax certificates to employees.
| Taxable income | Rate | Tax on this income |
|---|---|---|
| R1 – R245,100 | 18% | 18% of taxable income |
| R245,101 – R383,100 | 26% | R44,118 plus 26% over R245,100 |
| R383,101 – R530,200 | 31% | R79,998 plus 31% over R383,100 |
| R530,201 – R695,800 | 36% | R125,599 plus 36% over R530,200 |
| R695,801 – R887,000 | 39% | R185,215 plus 39% over R695,800 |
| R887,001 – R1,878,600 | 41% | R259,783 plus 41% over R887,000 |
| R1,878,601 and over | 45% | R666,339 plus 45% over R1,878,600 |
Employer payroll costs in South Africa are relatively low. There is no statutory employer pension contribution, although many employers offer a retirement fund as a benefit.
On earnings up to R17,712 a month, so a maximum of R177.12 each per month.
Of total payroll, for employers whose annual payroll is expected to exceed R500,000.
Annual workplace injury cover under the Compensation Fund, assessed on payroll and industry risk.
Build South African pay the way you already structure it, with your own salary components, deductions and formula columns, such as UIF and SDL columns. Want to know how well IceHrm handles payroll calculations for South Africa? Contact us or see Payroll →
Employment in South Africa is not "at will". Under the LRA, a dismissal must be for a fair reason related to conduct, capacity or the employer's operational requirements, and follow a fair procedure. Employees can refer unfair dismissal disputes to the CCMA or a bargaining council.
| Length of service | Notice |
|---|---|
| 6 months or less | 1 week |
| More than 6 months, up to 1 year | 2 weeks |
| More than 1 year | 4 weeks |
Employees dismissed for operational requirements (retrenchment) are entitled to at least 1 week's remuneration for each completed year of continuous service. Retrenchments must follow a consultation process under section 189 of the LRA, with extra requirements for large-scale retrenchments.
Final pay includes any unused annual leave. Unused sick leave is not paid out.
South Africa has 12 public holidays. When a public holiday falls on a Sunday, the following Monday is a public holiday.
Employees who do not work on a public holiday that falls on a normal working day are paid as usual. Work on a public holiday is by agreement only.
Keep South Africa's holiday calendar in one place, and use leave groups to give offices in other countries their own calendars, so everyone gets the right days off automatically. Holiday calendars →
Employers must give each employee written particulars of employment when they start, and explain them in a language the employee understands. A written contract usually covers these particulars.
Send contracts and written particulars for e-signing, store them on the employee's record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for South Africa, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for South Africa? Talk to us.
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