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What an Employee Really Costs in South Africa (Beyond the Salary)
⚡ Quick answer The cost of an employee in South Africa runs roughly 10–20% above gross salary once statutory costs and overheads are counted: employer UIF (1% of remuneration up to the ceiling), SDL (1% if annual payroll exceeds R500,000), the COIDA assessment (tariff per R100 of earnings by industry), paid leave (21 days annual plus sick and public holidays), and the practical costs of equipment, training and payroll admin. A R15,000 salary typically costs the business R17,000–R18,000 all-in. The salary is the number everyone negotiates; the cost of an employee is the number the business actually pays. The gap between the two surprises almost every first-time employer — here…
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Hiring Your First Employee? The Complete 2026 Checklist
⚡ Quick answer Hiring your first employee triggers a fixed sequence: register with SARS (EMP101e) within 21 business days of first paying them, register for UIF on uFiling, register with the Compensation Fund within 7 days of their start date, issue a written contract by day one, set up payroll with payslips, and diarise the monthly EMP201 deadline (the 7th). Most of it can be done in a week — or handled for you for around R1,950 total. There is a version of hiring your first employee that feels like a milestone — and a version that feels like a compliance ambush. The difference is a checklist. Here is the…
