Employer of Record South Africa

South Africa Employee Benefits

Employer of Record South Africa

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There aren’t many South Africa employee benefits that are mandated by law.  However, most employees do receive a statutory pension, which for those in the private sector is called the Occupational Retirement Provision (ORP) and is applicable to employers with five or more employees.

The ORP,  also known as provident funds, are defined contribution pension plans. Although the minimum contribution levels are set low at 2%, it’s worth noting that lots of employers and employees choose to contribute more. 

Additionally, some employers offer defined benefit plans, which have different contributions structure, with the employer providing all contributions and the benefits are determined by a set formula based on factors like salary and years of service.

South Africa Healthcare Benefits

South Africa does not have a comprehensive social security system or a national healthcare program; no significant social security taxes are levied. The social grants that are funded by national taxes are means-tested so it only pays out if you receive below a certain income threshold. 

As a result, one of the most popular South Africa employee benefits that are provided by employers is private healthcare.

Around 66% of South African employers offer some form of private healthcare coverage to their employees. In addition, the majority of these employers (about 85%) offer medical aid schemes, which are similar to health insurance plans.

It’s worth noting that the availability of private healthcare coverage can vary depending on the size and type of employer. For example, larger companies are more likely to offer private healthcare coverage than smaller companies. About 80% of companies with more than 200 employees offer private healthcare coverage, compared to just 40% of companies with 50 or fewer employees.

In addition, certain industries are more likely to offer private healthcare coverage than others. For example, the finance and insurance industry has the highest rate of private healthcare coverage, with about 89% of companies offering it, followed by the mining and quarrying industry at 76%.

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We are South Africa Employer of Record experts

We have extensive experience helping businesses expand their workforce in the South Africa. Take a look at our areas of expertise below:

Find out how payroll works in South Africa and what you can expect when it comes to salaries, bonuses and tax

Enhance your understanding of what your employee is entitled to when working in South Africa

We deliver a fully managed EOR Service in South Africa, including Payroll, HR and Legal compliance support

Unsure about what’s required when employing staff in South Africa? Find out about South African Work Permits and Visas

Wondering what it’s like to live and work in South Africa? We’ve got you covered in our extensive guide, including the do’s and don’ts

Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.

Carol Oliveira
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Frequently Asked Questions

Payrolling the employees is a key part of the service offered by an Employer of Record company. The Employer of Record will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.

Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.

Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.

We find that most of our clients are in the Tech, IT, Finance, NGO (Not for Profit) and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.

As a private company, we’re not beholden to shareholders Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so. 

We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.

We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!