South African Social Security
Our tax guide for freelance contractors working in South Africa
In principle, South African employers withhold South African social security contributions on the remuneration of their employees working in South Africa. Contributions are paid to the Unemployment Insurance Fund (UIF) which covers benefits for unemployment, illness, maternity, adoption and dependants of deceased persons. The contributions are 1% employer and 1% employee on remuneration of up to ZAR 131’592 per year.
The employer also has to pay the Skills Development Levy (SDL) of 1% on the full employee’s salary if the employer’s payroll total exceeds ZAR 500’000 per annum. Finally the employer has to make contributions to the Compensation Fund which provides benefits in case of disablement or death caused by occupational injuries or diseases. The contributions depend on the annual earnings of their employees and the nature of activities. They are paid on maximum earnings of ZAR 140’556 per employee per year.