Free tool · South Africa
Hiring Cost Calculator
Enter the salary you are planning to offer. This shows what that hire actually costs once UIF, the Skills Development Levy, COIDA, and any benefits are added. It is the number most first-time employers in South Africa do not see coming.
No signup required.
Salary and payroll
What you are planning to offer, and what you already pay everyone else.
Before deductions, as it appears at the top of the payslip.
Total salaries you already pay other employees this year. Leave at 0 if this is your first hire.
COIDA rate
Defaults to a rough 1% estimate. Your actual rate depends on your registered industry class with the Compensation Fund. Check your Letter of Good Standing or ask your broker for the real figure.
Benefits (optional)
Monthly employer contributions, if you offer them.
One-off costs (optional)
Once-off costs to get this person hired and working.
Frequently asked questions
What is included in the 'true cost' of an employee?
Beyond gross salary: the employer's UIF contribution (1%, capped), the Skills Development Levy if your total payroll is over R500,000 a year, and COIDA contributions to the Compensation Fund based on your registered industry class. Optional costs such as medical aid subsidies, retirement contributions, equipment, and recruitment fees are included if you enter them.
What is the Skills Development Levy and when do I have to pay it?
It is 1% of payroll, but small employers are exempt while their total annual payroll across all employees is reasonably expected to stay at or under R500,000. Once you cross that threshold, it applies to your payroll going forward.
What is COIDA and why do I need to budget for it?
The Compensation for Occupational Injuries and Diseases Act requires every employer to register with the Compensation Fund and pay an annual levy that insures employees against workplace injury or disease. The rate depends on your registered industry class and ranges from a fraction of a percent to several percent for higher-risk trades. Check your actual assessment rate with the Compensation Fund or your broker rather than relying on the default here.
Does this include paid leave?
Annual leave, sick leave, and public holidays are paid time already built into the salary you budget, not an extra cash cost. The thing worth noticing is different: those paid days produce no output, so the effective cost of a productive day is higher than salary divided by calendar working days.
Should I use a discounted probation salary instead?
This calculator estimates the ongoing cost once someone is fully on the payroll. If you are budgeting specifically for a probation period at reduced pay, enter that lower salary figure instead, and rerun it once the full salary kicks in.
Uses the current UIF earnings ceiling, the R500,000 SDL exemption threshold, and an adjustable COIDA estimate. Estimates only.
Built by Launchworks to help South African employers budget for a hire before they make an offer.