South African Employment Compliance

Everything you need to know about PAYE, UIF, SDL, COIDA and BCEA

When you hire employees in South Africa, you must comply with several statutory requirements. As your Employer of Record, TwoOceans EOR handles all of these on your behalf — registrations, monthly filings, payments and annual reconciliations.

PAYE (Pay-As-You-Earn)

PAYE is the system by which income tax is deducted from employees' salaries by the employer and paid over to SARS (South African Revenue Service) each month.

Key Requirements:

  • Mandatory for all employees earning above the tax threshold
  • Employer must register with SARS as an employer
  • Monthly EMP201 declaration and payment
  • Annual reconciliation and IRP5 certificates

UIF (Unemployment Insurance Fund)

The UIF provides short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption or parental leave.

Key Requirements:

  • Mandatory for all employees working more than 24 hours per month
  • Contribution: 1% employee + 1% employer (2% total)
  • Declared and paid monthly via EMP201 alongside PAYE
  • Annual reconciliation required

SDL (Skills Development Levy)

The Skills Development Levy funds education and training programmes to improve workforce skills in South Africa.

Key Requirements:

  • Applicable if annual payroll > R500,000
  • Levy rate: 1% of total remuneration
  • Submitted alongside PAYE via EMP201

COIDA (Compensation for Occupational Injuries and Diseases Act)

COIDA provides compensation for employees who are injured or contract diseases during the course of their employment.

Key Requirements:

  • Mandatory registration with the Compensation Fund
  • Annual assessment and fee based on payroll and risk category
  • Covers medical expenses and loss of earnings for work-related injuries
  • Employer liability limited once registered and compliant

Need Help With Compliance?

TwoOceans EOR manages all statutory registrations, filings and payments on your behalf. Get in touch to discuss your requirements.

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