Hire and pay talents
with Horizons in
Hire and pay talents
with Horizons in
South Africa is one of the most developed countries in Africa, with the continent’s second-largest economy. It is a popular place for international companies to do business, with a large, young population, strong business infrastructure, and relatively low costs. While the country has over a dozen official languages, English is widely spoken, and the country enjoys good links with the rest of Africa and the wider world.
|Population 59.3 million||Capital City Pretoria, Bloemfontein, and Cape Town||Languages Spoken More than a dozen, including Zulu, Xhosa, English, and Afrikaans.|
|Currency Rand||GDP per capita $5,090||Ease of Doing Business 84th in the world|
|Minimum Wage R23.19/hour||Average Wage ~R24,000/month (for non-agricultural workers)||Paid Leave 15 days|
South Africa recovered well from the global slump felt across 2020, and the OECD predicts economic growth of 1.8% and 1.3% in 2022 and 2023 respectively. With a young population and strong business infrastructure, it is and will continue to be a good country in which to do business.
South Africa’s range of labor laws govern the rights of employees in the country. For example, there are regulations covering working hours (no more than 45 hours per week), sick leave (30 days paid per six month cycle), annual leave (15 days), maternity leave (four months paid), and so forth. When hiring in South Africa, it’s important to understand and comply with those laws.
It can be beneficial to have a local South Africa hiring partner to ensure that you are in full compliance with all legal requirements for hiring in the country.
The business culture in South Africa will not feel significantly different to that of most countries in Europe and North America.
Punctuality and politeness are expected, and dress codes are generally quite formal in the workplace, although it is also common for people to wear traditional African clothing in the workplace. Business hierarchies are quite rigid and respected, with decision-making coming from the top.
Recruiting in South Africa now largely takes place online, with jobs and applications being handled via job sites. Some of the most popular websites to post and find jobs include Pnet, BestJobs, and many others. Social media sites such as LinkedIn and Facebook are also commonly used.
Important job sites for hiring in South Africa include:
Job interviews in South Africa are generally quite formal affairs, with face-to-face interviews taking preference over remote interviews. However, online video interviews have become more common in recent years.
It is permitted to ask the candidate’s salary history in South Africa. However, the candidate is not required to provide that information.
While the average increase is around 5.2 percent annually, when transferring to a new job, as in other countries, it is not uncommon for employees to get a 10-15 percent salary increase on their prior role.
The process of onboarding employees in South Africa is largely the same as anywhere else. Practices will vary from organization to organization, but the focus should always be on making the new employees comfortable, introducing them to colleagues, and supplying necessary training and orientation without overwhelming them.
|1 Jan Sunday||New Year’s Day|
|2 Jan Monday||Day off for New Year’s Day|
|21 Mar Tuesday||Human Rights Day|
|7 Apr Friday||Good Friday|
|10 Apr Monday||Family Day|
|27 Apr Thursday||Freedom Day|
|1 May Monday||Workers’ Day|
|16 Jun Friday||Youth Day|
|9 Aug Wednesday||National Women’s Day|
|24 Sep Sunday||Heritage Day|
|25 Sep Monday||Day off for Heritage Day|
|16 Dec Saturday||Day of Reconciliation|
|25 Dec Monday||Christmas Day|
|26 Dec Tuesday||Day of Goodwill|
With inflation running high, at the moment workers expect, on average, an 8% pay increase every 18 months.
Both freelancers or employees are viable hiring options in South Africa. As a major digital nomad hub, there are a large number of highly qualified freelancers and contractors in locations like Cape Town available for hire.
However, as in other countries, if you are in need of longer-term and fulltime workers, it is usually necessary to hire employees. This is the only way of ensuring that you are not liable for backtaxes, unpaid contributions and fines due to ’employee misclassificiation’.
There are usually two options for hiring employees in South Africa
Option 1: Open a subsidiary
The above process outlines what it takes to open a subsidiary. It is worth working with local partners to ensure that all the requirements for entity incorporation are satisfied
Option 2: Use an Employer of Record (EOR) solution
This option is usually best option for companies looking to get started in South Africa as soon as possible. The speed, low cost and compliance assurance provided by this option make a South Africa EOR solution the most efficient for international companies to hire in South Africa.
Your business can easily hire employees in South Africa without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 185 countries worldwide. All you need to do is focus on your business.