Payroll & PAYE
South African payroll runs alongside Pay-As-You-Earn (PAYE) income tax withholding administered by SARS on top of gross salary — plan for the full cost of employment, not just the base wage.
Source:Pay-As-You-Earn (PAYE)
Employer of Record
Hire in South Africa with an Employer of Record
South Africa's Basic Conditions of Employment Act requires employers to hand over a written statement of the core employment terms — hours, pay, deductions, leave and notice — right at the start of employment, not as an afterthought. Share the role, salary and start date, and PIO confirms the available arrangement for that hire, then coordinates the contract, PAYE-based payroll and leave around it.
What to plan for
Practical points to line up before you hire in South Africa.
Written particulars of employment
The Basic Conditions of Employment Act requires employers to give employees a written statement of the core terms of employment early in the relationship. We help make sure your offer and contract line up with that requirement before the hire begins.
Annual leave
Employees build up paid annual leave under the Basic Conditions of Employment Act. It should be built into the employment terms from day one and tracked consistently as the employee works.
Source:Basic Guide to Annual Leave
Termination & notice
Ending employment in South Africa involves a notice period and termination procedures set out in the Basic Conditions of Employment Act. We help you plan an exit that follows the contract and keeps documentation in order.
What PIO helps coordinate / What you provide
What PIO helps coordinate
Once your hire is confirmed, here's what we help you coordinate.
- Confirming country availability and the arrangement for your hire
- Coordinating the information and documents needed for onboarding
- Confirming how contract, payroll and statutory responsibilities are handled in your arrangement
- Explaining the process for changes, leave and offboarding
What you provide
You stay in control of the decisions that are yours to make.
- The role, compensation and any company-specific policies
- Final approval on the offer and any changes to it
- A point of contact for escalations during employment
How it works
A straightforward path from sign-up to your employee's first day.
- Step 1
Tell us about the hire
Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.
- Step 2
We coordinate onboarding
Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.
- Step 3
Your employee starts
You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.
Frequently asked questions
What written employment particulars does South African law require, and for how long must we keep them?
The Basic Conditions of Employment Act requires employers to give each employee a written statement of the core employment terms — including hours, pay, deductions, leave and notice — from the start of employment, and to keep that record for three years after the employment ends. We help make sure your offer and contract line up with that requirement before the hire begins.
Can I use PIO to start an EOR hire in South Africa?
Yes — PIO supports Employer of Record hiring in South Africa. Sign up or book a demo and we'll confirm the available arrangement for your specific role before anything starts.
How is annual leave calculated for an employee in South Africa?
The Basic Conditions of Employment Act sets annual leave at 21 consecutive days for each 12-month leave cycle, or the equivalent build-up of one day for every 17 days worked. It should be written into the employment terms from day one and tracked consistently while the employee works.
Source:Basic Guide to Annual Leave
Does PIO need to coordinate anything beyond PAYE for payroll in South Africa?
Yes — registering for PAYE with SARS also triggers the employer's registration for Unemployment Insurance Fund (UIF) contributions, and both are typically declared together with the Skills Development Levy on the same monthly filing. We help coordinate that full statutory payroll picture, not just income tax withholding.
Source:Pay-As-You-Earn (PAYE)
What notice period does South African law require if we need to end an employment?
The Basic Conditions of Employment Act sets minimum notice at one week for service of up to six months, two weeks for six months to a year, and four weeks once the employee has worked a year or more. We help you plan an exit that matches the applicable tier and keeps documentation in order.
What do we need to provide to get a South African hire started?
You give us the role, compensation, any company-specific policies and your target start date. We coordinate the contract, onboarding paperwork and payroll setup around what you decide.
3 official sources
Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.
- Basic Guide to Annual LeaveDepartment of Employment and Labour
- Pay-As-You-Earn (PAYE)South African Revenue Service
- Basic Conditions of Employment ActDepartment of Employment and Labour
Ready to hire in South Africa?
Sign up to start an EOR hire in South Africa. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.