Hiring in South Africa through an Employer of Record
A South African employer pays into the Unemployment Insurance Fund and the Skills Development Levy, both collected by SARS.
On top of salary, the employer pays
- 1% Unemployment Insurance Fund, employer
- 1% Skills Development Levy
What the employer pays on top of salary in South Africa
- Unemployment Insurance Fund, employer: 1 percent of pay, matched by the employee.
- Skills Development Levy: 1 percent of total pay, paid by the employer alone.
UIF stops at a monthly earnings ceiling, so this runs high for well paid staff. Employers with a small total payroll are exempt from the levy. Workers compensation (COIDA), which varies by industry, is left out.
Yearly cost of one employee in South Africa, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, RemoFirst $199, Remote $699, Skuad $199, Velocity Global (Pebl) $399. Not published: Rippling.
Where these numbers come from
- Unemployment Insurance Fund, employer on sars.gov.za read
- Skills Development Levy on sars.gov.za read
- Each vendor's own pricing page, linked from its name above.