Payroll taxes
in South Africa.

SALARY PAYMENT IN South African Rand (ZAR, R)

CONTRACT LANGUAGES English

PAYROLL TAX 2.00%

PAYROLL CYCLE Monthly

TIME TO HIRE 12 hours
Get Started

Horizons-owned entity with local country experts in Seoul.

We offer fair, scalable, and transparent pricing on South Korea PEO service. Contact us for a cost breakdown

End service in South Korea with no additional penalties or fees.

Including vision, dental, death & disability, travel, and more.

Hire and pay talents
with Horizons in
180+ countries

Get started

South Africa

What is the average employer tax rate in South Africa?

The average employer tax rate in South Africa is 28% — the corporate income tax rate in South Africa.

This rate is applicable to resident companies, which are companies incorporated in South Africa or companies effectively managed and controlled in South Africa (the latter assumed to have a permanent establishment in South Africa).

South Africa – 2023 CIT tax rates

Taxable income (KRW)	Tax rate
0 – 200 MM	28%

What is the average employee tax rate in South Africa?

South Africa has progressive rates of individual income tax. The different tax brackets are set out below:

South Africa – Individual Income Tax

Taxable Income (ZAR)	Tax rate 2023
0 – 266.000	18%
266.001-353.000	26%
353.001 – 488.700	31%
488.701 – 641.400	36%
641.401-817.600	39%
817.601-1,731.600	41%
1,731.601+	45%

Employer contributions in South Africa

South Africa does not have a comprehensive social security system therefore there is no significant social security taxes levied. Total employer contributions amount to roughly 2.65% of the employee’s salary.

1% goes into the mandatory contribution to unemployment insurance fund (UIF), another 1% goes into skill development levy (SDL) for training and educational purpose, and another roughly 0.5% goes into a worker’s compensation fund (COIDA). The rate of this contribution depends on how dangerous the work is considered.

South Africa – Employer contributions

Contribution item	Contribution rate
Unemployment Insurance Fund (UIF)	1% up to a certain threshold
Skills Development Levy (SDL)	1% (large employers only)
Compensation for Occupational Injuries and Diseases Act (COIDA):	Varies

Employee contributions in South Africa

In South Africa, employees and employers contribute to the same things. South Africa does not have a comprehensive social security system therefore there are no significant social security taxes levied. Total contributions amount to roughly 2.65% of the employee’s salary.

1% is deducted from an individual’s salary and goes into the mandatory contribution to unemployment insurance fund (UIF).

Other payroll taxes, such as the Skills Development Levy are paid only be employers, not employees.

South Africa – Employee contributions

Contribution item	Contribution rate
Unemployment Insurance	1%

Hiring in South Africa, Made Easy

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 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What is the tax bureau of South Africa called?

The tax bureau of South Africa is called the South African Revenue Service (SARS).

Is there an employer payroll tax contribution in South Africa?

South Africa does not have a comprehensive social security system therefore there are no significant social security taxes levied. Nevertheless, employer contributions amount to roughly 2.65% of the employee’s salary.

How does the payroll tax system of South Africa work?

First, employers are required to register with the South African Revenue Service (SARS) and obtain a tax reference number.

Second, employers must withhold payroll taxes from their employees’ salaries and remit them to SARS on a monthly basis. The payroll taxes include income tax, unemployment insurance fund (UIF) skills development levy (SDL) contributions, and worker’s compensation insurance (COIDA).

Finally, employers must also submit an annual reconciliation statement to SARS that reconciles the payroll taxes withheld and remitted during the year.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons completely took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVice President of Software Development

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources

Global Benefits

Global Immigration

Talent Acquisition

About Horizons

Success Stories

Partner Program

Global Hubs

Careers

Hire Globally

Switch to Horizons

Subsidiary to EOR

For HR Teams

For Finance Teams

For Legal Teams

Insight

Inside Horizons

Help Center

Support

Global Payroll Calculator

Employee Misclassification Calculator

Payroll taxes
in South Africa.

What is the average employer tax rate in South Africa?

What is the average employee tax rate in South Africa?

Employer contributions in South Africa

Employee contributions in South Africa

Hiring in South Africa, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Hire Anywhere. Today.

Payroll taxes in South Africa.

What is the average employer tax rate in South Africa?

What is the average employee tax rate in South Africa?

Employer contributions in South Africa

Employee contributions in South Africa

Hiring in South Africa, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

Hire Anywhere. Today.

Payroll taxes
in South Africa.