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entity purely to run payroll is rarely practical. Entity creation takes months, requires local governance, and introduces ongoing corporate tax filing duties. An Employer of Record solves this issue by acting as the legal employer in South Africa. Through an EOR partnership, DNA EOR can legally employ your South African staff on your behalf. We handle local employment contracts, run monthly PAYE, UIF, and SDL submissions with SARS, administer statutory benefits, and execute payroll accurately. Your leadership team retains direct operational control over daily work, tasks, and team integration. Partnering with an EOR keeps international payroll compliant and predictable, allowing your business to focus on operations while local experts manage the underlying payroll infrastructure.
Failing to model and communicate that net figure during hiring creates immediate dissatisfaction on the first pay run.
underestimate how progressive PAYE and statutory deductions affect a South African payslip. A gross salary offer of R60,000 per month results in roughly R44,000 in net take-home pay. Failing to model and communicate that net figure during hiring creates immediate dissatisfaction on the first pay run. Building a stable remote team requires paying in the local currency, setting fixed payment dates, and providing clear payslip breakdowns that accurately reflect local tax brackets. How an Employer of Record handles international payroll For a growing company hiring two or three people in a country where it has no registered business, setting up a local legal
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GLOBAL PAYROLL MAGAZINE ISSUE 28
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