Employee Benefits in South Africa

Bonuses and additional payments

In South Africa, there is no statutory requirement for employers to provide bonuses; however, it is customary for companies to offer a 13th-month bonus, often referred to as a "13th cheque," typically paid in December. This bonus is generally equivalent to one month’s salary and is considered a discretionary benefit, contingent upon company policy or individual employment contracts. Employers may also offer performance-based or production bonuses, which should be awarded based on fair and objective criteria.

Annual leave

Employees in South Africa are entitled to paid vacation leave as soon as they start employment. The statutory entitlement is 21 consecutive days per year, which equates to 15 working days for a five-day workweek. This leave is fully paid and can be taken at a time agreed upon between employer and employee.  

Additional leave may be offered as part of an employment contract or collective agreement, though it is not required by law. Many employers offer enhanced leave policies to stay competitive and improve retention.  

Unused statutory leave may be carried over to the following year with employer approval. Payment in lieu of unused leave is only permitted upon termination of employment.

Sick leave

In South Africa, personal and sick leave are governed by the Basic Conditions of Employment Act. Employees are entitled to paid sick leave equal to the number of days they would normally work in a six-week period, over a three-year cycle. During the first six months of employment, employees accrue one day of paid sick leave for every 26 days worked. Employees continue to accrue paid leave during periods of sick leave.

Parental leave

New mothers in South Africa are entitled to four months of leave. This leave can be taken up to four weeks before the due date, and is unpaid, as most women can receive benefits from the government during this time. You may not ask a female employee to come back to work until six weeks after giving birth unless a medical professional has certified that she is medically fit to work. 

There is also an additional 10 days of parental leave that may be used by the other parent. When parents adopt a child aged two or under they are also entitled to leave; which parent gets the four-month leave and which will apply for the 10 days’ leave is the choice of the parents. 

Further, employees are entitled to three days of paid family responsibility leave per year, as long as they have been with their employer for at least four months and work at least four days a week. This leave is to cover the illness or death of a family member.

Additional benefits

In addition to the above, employers in South Africa are required to provide several statutory benefits under national labor law. Employers contribute approximately 2% of the employee's gross salary for social security benefits, while employees contribute around 1%. These contributions cover the benefits listed below.

• Pension Scheme: Provides retirement income through the Unemployment Insurance Fund (UIF) and private retirement contributions.
• National Health Coverage: Offers healthcare access through a mix of private schemes and limited public services.
• Unemployment Insurance: Supports employees during periods of involuntary unemployment through the UIF. 

In order to attract top candidates, businesses in South Africa often offer fringe benefits like retirement funds, life insurance, a fitness allowance, childcare assistance, and tuition reimbursement.

As your employer of record in South Africa, we help design compliant and competitive benefit packages that align with statutory obligations and local market expectations.