Living and Working in South Africa
November 19, 2018
By Mary Anne Thompson, Founder and President, GoinGlobal, Inc.
An expat favorite, South Africa is affordable, modern and an increasing draw for foreign nationals everywhere.
South Africa is a middle-income country with an abundant supply of natural resources and well-developed financial, legal, transportation and energy sectors. The country of 55 million residents is a melting pot of culturally, linguistically, racially and religiously diverse people.
South Africa is the most developed African country, and has also a relatively modern infrastructure compared to other countries on the African continent. Cape Town, Pretoria, Durban and Johannesburg are cosmopolitan cities and the main destinations for foreign professionals.
Income and overall economic inequality remain among the most pervasive legacies of the apartheid era, a reality that still means the exclusion of the poorest population sectors from quality-of-life improvements. More than half of the population, according to the World Bank, lives under the poverty line, making South Africa one of the most unequal countries in the world.
An Expat Favorite
South Africa is affordable for foreigners coming from Europe or North America. The cost of living (including rent) in Johannesburg is 55% cheaper than in New York City. The average cost of living (including rent) in Cape Town is 51% cheaper than in Paris.
Though the country is affordable for foreign residents, salaries are low. A financial manager median salary per year is around 33,000 USD; a registered nurse earns about 15,000 USD a year; a software developer has a median salary of 19,000 USD a year, while an accountant earns around 17,000 USD a year.
In general, foreigners love the country’s magnificent scenery and pleasant climate. They have more time to do things they like and have a better overall quality of life in South Africa than in their home country. Foreigners find it easy to get settled and organize their finances, health care, housing, child care and utilities when they move to the country’s main professional destinations. Many foreigners say their work-life balance is better; they have more affordable domestic help than elsewhere, live in better accommodations and enjoy a healthier diet.
Overall, major cities are affordable destinations for expats. Johannesburg ranks 177th and Cape Town ranks 170th for cost of living for foreign professionals, according to Mercer’s recent global surveys, which compare prices in 209 international cities across five continents.
The main factors that foreign nationals complain about, however, are poor infrastructures, the country’s political instability, the high levels of insecurity in South African cities and the country’s economic situation and future.
Together with the cost of gasoline, second-hand imported cars’ prices have also been rising. Among food items, alcohol, fish, meat and vegetables have seen the biggest price increase from last year, while bread, cereals, fruit and sugar sweet prices have dropped noticeably.
While the cost of living in Johannesburg is low for foreigners in comparison to other global capitals, it is, in general, 13% more expensive than in Cape Town, according to data by Expatistan.
Living
Crime rates are higher in South Africa than in Western countries, and home security issues can affect housing choices. Many foreigners choose to live in gated communities. The level of danger in residential areas can change overtime, therefore newcomers should familiarize themselves with any area before moving there.
Johannesburg is the largest city in South Africa and one of the largest metropolitan areas in sub-Saharan Africa. Although the city offers a large choice of residential neighborhoods, distances between some areas and others are very large, and traffic can be quite intense, especially during peak hours. For this reason, it is advisable to choose a residential location that is close to the place of work or the children’s school.
Renting a house in Johannesburg tends to be, on average, 6% cheaper than in Cape Town. Utility costs, however, tend to be higher in Johannesburg than in Cape Town. For example, the cost for a month of gas, electricity and water for one person in a 45-square-meter (480-square-foot) studio apartment is, on average, 891 ZAR in Johannesburg and 740 ZAR in Cape Town, according to Expatistan data.
Cape Town is a popular destination for study-abroad programs and internships for international students. Housing on campus is scarce, however, and it is usually managed by the university services. A growing number of private companies offer housing close to the main universities. CampusKey (English) is one of them.
Foreign ownership is allowed in South Africa with no restrictions. Housing prices have been decreasing – when adjusted to inflation - for the last two years, although it seems they are slowly recovering.
When it comes to comparing home prices in South Africa’s three largest cities, properties in Cape Town are generally more expensive than homes in Johannesburg and Durban.
However, there is a wide range in the average sales prices per square meter in Johannesburg, Cape Town and Durban. In-depth research is essential before choosing a house or location in South Africa.
Working
The maximum regular work time allowed in South Africa is 45 hours per week. The average work week is usually from 40 to 45 hours in factories and 37.5 hours in offices. Overtime is voluntary, and workers must be paid one time-and-a-half for overtime and double time on Sundays. No more than three hours of overtime is allowed per day, with only ten hours of overtime permitted per week (on top of the regular work time of 45 hours per week). These restrictions do not apply to senior managers and sales staff. Many employers pay a 13th-month salary as a (Christmas) bonus and support pension funds for employees.
Business hours are fairly constant all year round:
- Government offices, as well as post offices, are open Monday through Friday from 8:30 am to 4:30 pm. Post offices also open on Saturday morning.
- Generally, businesses are open on weekdays from 8 am to 1 pm and 2 to 5 pm.
- Most offices observe a five-day week, but many stores are open on Saturdays, and from 9 am to 2 pm on Sundays.
- Banks are open weekdays from 9 am to 3:30 pm, and Saturdays from 8:30 to 11 am. In some large shopping centers, banks are open on Sunday morning as well.
Vacation and Leave
South African employers are required to offer all wage earners the following vacation time:
- at least 15 days of leave per year if the employee works five days a week;
- at least 18 days annual leave for those who work six-day weeks.
Maternity leave: New mothers may take at least four consecutive months of maternity leave (precisely 17.32 weeks maximum), starting four weeks before the expected date of birth. They may not go back to work within six weeks after the birth unless the doctor or midwife certifies it is safe to do so.
Family/personal leave: Employees who have been with an employer for more than four months and work at least four days a week for that employer are entitled to three days of paid family responsibility leave per year upon request. Employees may use their family responsibility leave when a child falls ill, or upon the death of the spouse or of a family member.
Conclusion
South Africa has its issues; there is inequality and infrastructure to deal with in this developing country. Even still, it is a favorite of expats, who enjoy the affordability, mild climate, friendly people and interesting culture.