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Republic of South Africa
Pretoria (Executive) Bloemfontein (Judicial) Cape Town (Legislative)
57.78 million
South African Rand
.za
+27
South African Rand
Taxable income |
Tax on lower amount (ZAR) |
Rate on excess |
|
Exceeding (ZAR) |
Not exceeding (ZAR) |
||
0 |
195,850 |
0 |
18 |
195,850 |
305,850 |
35,253 |
26 |
305,850 |
423,300 |
63,853 |
31 |
423,300 |
555,600 |
100,263 |
36 |
555,600 |
708,310 |
147,891 |
39 |
708,310 |
1,500,000 |
207,448 |
41 |
1,500,000 |
532,041 |
45 |
Deductible Expenses |
|
Employment Expenses |
|
Personal Deductions: - |
|
Charitable contributions |
|
Medical Expenses |
|
Income insurance policy |
|
Retirement Funds |
|
Business Deductions |
|
Type of Visa/ Permit |
Documentation |
Validity |
Eligibility |
Critical skills work visas |
|
Maximum 5 years |
|
General work visas |
|
Maximum 5 years |
|
Intra-company transfer work visas |
|
4 years |
|
Corporate work visas |
|
Maximum 3 years |
|
VAT |
|
Standard Rate |
15% |
Zero Rate |
0% |
WHT |
|
Dividends |
20% |
Interest |
15% |
Royalties |
15% |
Technical Service Fees |
0% |
Statutory Benefits |
Annual Leave |
Public Holidays |
Maternity Leave |
Paternity Leave |
Sick Leave |
Overtime Pay |
Notice Period |
Severance Pay |
Social Security Benefits |
Christmas Bonus% |
Based on one month bonus |
Christmas Bonus Over Vacations % |
0% |
Severance per Year % |
Employees are entitled to severance pay that equals to 1 week of pay after one year of service (1.37% of annual salary) |
Vacations % | Employees are entitled to 15 days of annual leave (4.28% of annual salary) |
Notice % |
Employees are entitled to a 1 month of notice period for one year of service or more (8.33%) |
Christmas Bonus Over Notifications% | 0% |
Vacations Plus% |
0%
|
Total percentage of Salary (yearly)
|
The total employment accruals as a percentage of salary per anum are equal to 22.31%
|
Unemployment insurance contributions ZAR 212,539 | 1.00% |
Maternity leave | 12 weeks |
Christmas Bonus | 8.33% |
Vacations | 7.40% |
Description | South Africa does not have a comprehensive social security system or a national healthcare program; consequently, no significant social security taxes are levied. Employees and employers are each obligated to make contributions to an unemployment insurance fund at the rate of 1% of gross remuneration. The employee's contribution is withheld by the employer. However, both the employer and employee's contributions are limited to a remuneration of ZAR 212,539 per annum per employee.
|
Employment Accruals | ||
Annual Leave | Every employee is entitled to 21 consecutive days’ annual leave on full pay in every leave cycle. This equates to 15 working days per annum if the employee works a five-day week, and 18 working days per annum if the employee works a six-day week. |
This equals 5.75% (21/365 days) of annual income |
Maternity Leave | Section 22(1) to 22(4) of South Africa’s Employment Act stipulates that during each 36-month cycle starting from the first day at work, an employee is entitled to a paid sick leave. This should be equivalent to the exact number of days that they usually work in a typical 6-week period. Therefore, in case the employee works five days per week, then they are entitled to a 30-day sick leave on full pay. On the other hand, if the person works six days per week, then they will have a 36-day sick leave on full pay. |
This equals 8.22% (30/365 days) of annual income |
Overtime | Employees may work a maximum of 3 hours’ overtime per day - or 10 hours in any one week. Overtime remuneration is paid at 1.5x normal rate, and 2x normal rate for Sundays and public holidays |
Normal hourly rate is around 194 ZAR. Overtime is paid at an additional 97 ZAR. |
Severance | A retrenched employee must at least be paid 1 week's pay for each completed year of ongoing service. | This equals 1.92% (1/52 weeks) of annual income |
Social Security | Employers and employees each contribute to the fund at a rate of 1% of the employee’s remuneration up to a remuneration limit of ZAR14,872 per month. Employers are required to make contributions to the Compensation Fund, which was created under the Compensation for Injuries and Diseases Act to insure employees against industrial accidents or illnesses that result in death or disability. Contributions to the Compensation Fund are payable on annual remuneration of up to ZAR458,520 |
This equals 1% of annual income |