South African Employer Rates and Thresholds 2026

South African employers pay two payroll contributions: 1% to the Unemployment Insurance Fund (matched by the employee) on pay up to R17,712 a month, and the 1% Skills Development Levy on total pay for employers whose payroll exceeds R500,000 a year.

Workers' compensation (COIDA) assessments are also compulsory and set by industry class; they aren't in the table. There is no compulsory employer pension contribution.

Employer amounts for a full year at 2026 rates, using the contributions above:

• Up to 45 ordinary hours a week: no more than 9 hours a day for employees working five days or fewer a week, or 8 hours a day for those working more than five days.
• Only by agreement, up to 10 hours a week and no more than 12 hours of work in a day, paid at least 1.5× the normal wage; by agreement, partly or fully as paid time off instead. The working-time rules don't apply to senior managerial employees, travelling sales staff who set their own hours, or employees earning above a threshold set by the Minister.
• Sunday work is paid at double the normal wage, or 1.5× for employees who ordinarily work on Sundays. Work on a public holiday is only by agreement and paid at least double the normal daily wage.
• At least 21 consecutive days of paid annual leave per 12-month leave cycle (three weeks, or 15 working days for a five-day week), or by agreement one day for every 17 days worked. Leave must be granted within six months of the end of the cycle and can only be paid out instead of taken when employment ends.
• Paid sick leave equal to the days normally worked in six weeks over each 36-month cycle (30 days for a five-day week); during the first six months, one day for every 26 days worked. An employer can ask for a medical certificate for absences of more than two consecutive days or more than two occasions in eight weeks.
• 3 paid days per annual leave cycle for employees with more than four months' service who work at least four days a week: when the employee's child is sick, or on the death of a spouse or life partner, parent, adoptive parent, grandparent, child, adopted child, grandchild or sibling. Unused days lapse at the end of the cycle. (Since 2018, the birth of a child is covered by parental leave instead.)
• At least 4 consecutive months of maternity leave, starting up to four weeks before the expected birth; no work for six weeks after the birth unless certified fit. Under the 2018 amendments, a parent is entitled to at least 10 consecutive days of parental leave from the birth (or adoption), and an adoptive parent of a child under two to 10 consecutive weeks of adoption leave. The Act doesn't require the employer to pay for this leave: employees claim maternity and parental benefits from UIF. Check for later court rulings on how parents can share leave.
• 12 public holidays a year under the Public Holidays Act: New Year's Day, Human Rights Day (21 March), Good Friday, Family Day (Easter Monday), Freedom Day (27 April), Workers' Day (1 May), Youth Day (16 June), National Women's Day (9 August), Heritage Day (24 September), Day of Reconciliation (16 December), Christmas Day and the Day of Goodwill (26 December). When one falls on a Sunday, the following Monday is a public holiday.

• At least 1 week (employed six months or less), 2 weeks (more than six months to one year) or 4 weeks (one year or more), given in writing. An employee can't be required to give longer notice than the employer, and the employer may pay salary instead of notice.
• A dismissal is unfair unless the employer proves a fair reason (the employee's conduct or capacity, or the employer's operational requirements) and a fair procedure, judged against the Code of Good Practice: Dismissal. Compensation for an unfair dismissal is capped at 12 months' pay, or 24 months' pay if the dismissal is automatically unfair (for example, for exercising rights under the Act). Disputes go to the CCMA.
• An employee dismissed for operational requirements (economic, technological, structural or similar needs) is owed at least one week's pay for each completed year of continuous service. An employee who unreasonably refuses an offer of alternative employment loses the entitlement.