Employee Lifecycle

Hiring an Employee Checklist (South Africa)

Before your new hire's first day, there are compliance, contract and payroll steps every South African employer must complete. Use this checklist to make sure nothing slips through.

1. Before you make the offer

• Confirm the role's pay frequency, salary type (monthly/hourly/daily) and reporting line.
• Decide the offer structure: basic salary vs. total Cost to Company.
• Check the offer meets the National Minimum Wage for the role.

2. Employer registrations (first hire only)

• Register as an employer for PAYE with SARS — see our PAYE registration guide.
• UIF registration is included automatically with PAYE registration.
• Register for SDL if your annual payroll is expected to exceed R500,000.
• Register with the Compensation Fund (COIDA) to cover workplace injury claims.

3. Documents to collect from the new employee

See our full New Employee Documents guide — at minimum you need certified ID, banking details, a tax number (if they have one) and next-of-kin/emergency contact details.

4. Contract and payroll setup

• Issue a written employment contract before or on the first day — required under the BCEA.
• Capture the employee on your payroll system with correct pay frequency, salary type and banking details.
• Set up leave balances (annual, sick) from the employee's start date.
• Confirm probation period length and review dates, if applicable — see our Probation Period guide.

5. First payslip

Make sure the first payslip reflects the correct pro-rata pay if the employee started mid-period, and that PAYE, UIF and any other deductions are calculated correctly from day one.

People Also Ask

Do I need to register for UIF separately from PAYE?

No — UIF registration happens automatically when you register as an employer for PAYE with SARS.

What documents must a new employee sign before starting?

A written employment contract must be signed before or on the employee's first day, as required by the BCEA.

Is SDL required for every new employer?

No — SDL only applies once your expected annual payroll exceeds R500,000.

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