Our Expertise
Managing a global workforce in South Africa
Managing a workforce in South Africa poses unique challenges due to its diverse cultural landscape and complex employment laws. With TopSource Worldwide's expertise in global employer services, we ensure compliance with South Africa's Basic Conditions of Employment Act and other relevant regulations. Our services include staying informed about sectoral determinations and adhering to the nation's Income Tax Act, ensuring a smooth operational process for businesses looking to establish or maintain their presence in this vibrant and diverse country.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in South Africa
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in South Africa. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your South Africa-based employees.
End-to-end South African payroll services
Looking to expand into South Africa? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your South African expansion initiatives.
Global entity management
Venturing into the South African market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in South Africa
Entering the South African market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in South Africa.
South African Insights
Key insights into South Africa's landscape
VAT rates: South Africa has a standard Value Added Tax (VAT) rate of 15%, with some goods and services exempt or subject to a zero-rate.
Ease of Doing Business rank: South Africa ranks 84th in the World Bank's Ease of Doing Business Index, indicating a moderately challenging business environment.
Consumer Confidence Index: As of 2022, South Africa's Consumer Confidence Index was 35.3, reflecting cautious economic sentiment.
Employee maternity/paternity leave: Maternity leave is 4 months, and paternity leave is 10 days, aiming to support new parents in the workforce.
Employee termination period: Standard notice for termination varies but is typically 1 to 4 weeks, depending on employment contract terms and duration.
Employee salary pay date: Wages are commonly paid monthly, with specific pay dates stipulated in employment contracts and subject to labour laws.
Bank holidays: South Africa observes public holidays, including New Year's Day, Human Rights Day, and Christmas, with a total of 12 public holidays in a year.
Contractual Provisions
There’s no prescribed time limit set for a probation period. The probation period must be reasonable, given the circumstances of the job.
The preferred practice in South Africa is six months probationary period for a new employee and three months probationary period for an internal transfer. Extensions to the probationary period are permissible if performance is not satisfactory.
Being on probation doesn’t give an employee any specific legal rights. An employee can be dismissed with one week’s notice while on probation.
The maximum normal working time allowed (section 9 BCEA) is 45 hours weekly. This is nine hours per day (excluding lunch break) if the employee works a five-day week, and eight hours per day (excluding lunch break) if the employee works more than five days per week.
It’s important to note that employees earning in excess of the earnings threshold are excluded from the BCEA provisions which regulate ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, Sunday pay, pay for night work and pay for work on public holidays.
The current threshold in effect from 1 March 2021 is an annual amount of R211,596.30.
There are no mandatory pension contributions in South Africa. The employee can choose to have a private pension which would be under their own personal remit and would remain separate to their employment.
Meal and rest breaks are unpaid and are, therefore, not included in the calculation of working hours. The statutory meal break is one hour, but by agreement between the employee and employer, this may be reduced to 30 minutes.
Employers are required to pay into the Workers’ Compensation Fund once a month to provide compensation for workers who get injured at work, contract occupational diseases, or for death as a result of these injuries or diseases. The contribution is solely the employer’s responsibility and money mustn’t be deducted from a worker’s salary.
The annual assessment fee is calculated on workers’ earnings and an assessment tariff based on the risks associated with the type of work being done.
Assessment fee = total workers’ pay ÷ 100 x assessment tariff. Assessment tariffs, reviewed annually, are based on the risks related to a particular type of work.
The amount of R506, 473.00 per employee per annum is the maximum amount on which an assessment of an employer shall be calculated on with effect 1 March 2021.
Overtime can only be required when there’s an agreement between the employer and the employee, and such agreement may not require the employee to work more than 12 hours in any day. An employee may not work more than 10 overtime hours in a week cycle.
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