PAYROLL IN SOUTH AFRICA

Here’s what you need to know about payroll if your business is expanding into South Africa. South Africa's payroll and HR landscape is shaped by its complex history and strong worker protection laws, such as the Employment Equity Act and the Broad-Based Black Economic Empowerment (B-BBEE) Act. Businesses need to reconcile their liabilities and payments to the revenue authority twice a year. With complex calculations and strict deadlines, large penalties are imposed if submitted late or incorrectly. Getting your payroll compliance right means a happy, engaged and motivated workforce. Getting it wrong can result in financial penalties, investigation by local authorities and reputational damage.

While payroll and HR regulations are similar in most developed nations, it's the ‘exceptions’ in each country that tend to cause challenges. While English remains the primary business language, it is worth noting that in South Africa there are 11 official languages, with many organisations tailoring their payroll information in local languages to support employee understanding. Payroll professionals also need to navigate several statutory contributions, including the Skills Development Levy, which is paid to the South African Revenue Service (SARS).