South Africa HR Glossary

The BCEA allows employees to work a maximum of 45 ordinary hours per week (9 hours/day for a 5-day week, 8 hours for a 6-day week). Overtime is capped at 10 hours per week and must be paid at 1.5× the normal wage (or 2× on Sundays and public holidays). Annual leave is a minimum of 21 consecutive days per 12-month cycle. Employers may not contract out of BCEA minima; any attempt to do so is unenforceable.

The LRA requires procedurally and substantively fair dismissal — meaning there must be a valid reason (conduct, capacity, or operational requirements) and a fair process (notice, hearing, opportunity to respond). Unfair dismissal referrals go to the CCMA. The LRA also governs retrenchment processes (Section 189/189A), requiring consultation, consideration of alternatives, and severance pay. LRA protections apply to all employees, including fixed-term workers.

Both employer and employee contribute 1% of the employee's gross remuneration to the UIF (employer pays 1%, employee 1%, total 2%), subject to a monthly remuneration ceiling (R17,711 from 1 March 2024). Contributions must be remitted to SARS by the 7th of each month via the eFiling system. UIF registration is mandatory for all employers. Benefits can be claimed for up to 12 months depending on contributions.

PAYE is calculated using SARS tax tables on each employee's taxable income (including fringe benefits). Employers must submit the EMP201 return and pay PAYE by the 7th of the following month. Monthly employer reconciliations (EMP501) are submitted twice a year. At tax year-end (28/29 February), employers issue IRP5/IT3(a) certificates to employees. Non-compliance attracts penalties of 10% of the tax due plus interest.

Employers with an annual payroll of R500,000 or more must register and pay SDL. Employers can claim back up to 20% of SDL paid as mandatory grants (formerly administrative grants) and up to 50% as discretionary grants from their SETA for submitting annual training reports. Micro-employers below the threshold are exempt. SDL is remitted monthly alongside PAYE and UIF via the EMP201 return.

Employers must register within 7 days of taking on their first employee. The annual assessment is calculated by the Compensation Commissioner on the employer's declared payroll in each industry risk class. Employers who fail to register or who under-report payroll can be penalised and lose their liability protection — leaving them personally liable for injured workers' claims. Domestic workers are exempt from COIDA.

Employees must refer unfair dismissal disputes to the CCMA within 30 days of dismissal, or within 90 days for unfair labour practice disputes. CCMA commissioners conduct conciliation (mediation) attempts, and if unresolved, arbitration hearings where they issue binding awards. Employers who do not participate in CCMA proceedings can have default awards issued against them. CCMA awards can be made an order of the Labour Court.

From 1 March 2025, the NMW is R28.79 per hour. Specific sectoral minimum wages apply in domestic work (R21.09/hr) and for expanded public works programme workers. Paying below the NMW is an offence; workers can refer underpayment to the Department of Employment and Labour or the CCMA, and employers can be ordered to pay arrears plus a penalty of twice the underpayment. The NMW applies to all employees.