South Africa's workforce is diverse, and many industries rely on foreign nationals to fill skills gaps, meet labour demands, or support business growth. From specialised expertise to essential services, foreign workers play an important role in keeping businesses running smoothly.
Sectors that commonly hire foreign nationals include:
But while hiring foreign talent brings huge value, employers often face a major challenge: understanding the legal requirements and managing compliant, secure payroll for foreign workers.
Many foreign nationals do not have South African bank accounts, which makes paying wages legally and safely more complicated. Employers must ensure compliance with labour laws, immigration regulations, and anti–money laundering rules — all while keeping payroll simple and reliable.
That's why this guide was created.
This complete guide breaks down the legal requirements, documentation, payroll options, and best practices for paying foreign workers safely and efficiently in South Africa.
Whether you're hiring one employee or managing a large team, this resource will help you stay compliant and run payroll with confidence.
In South Africa, a foreign national is anyone who is not a South African citizen, regardless of how long they have lived or worked in the country. This includes a wide range of individuals, each with different types of documentation and legal requirements.
Here's a simple breakdown:
Citizens from neighbouring Southern African Development Community countries such as Zimbabwe, Lesotho, Mozambique, Malawi, Zambia, and others.
They often enter South Africa on visitor permits or special dispensations and may apply for work authorisation depending on their circumstances.
Individuals who have applied for refugee status and hold a Section 22 Permit.
This document generally allows them to work and study legally while their application is processed.
People granted Section 24 refugee status have the right to work, study, and run a business in South Africa.
Those with valid work visas, such as:
These visas allow lawful employment for the duration and conditions specified.
Individuals granted permanent residency have almost the same rights as South African citizens, including the unrestricted right to work.
Each of these groups requires different documentation, and employers are legally responsible for verifying:
Before hiring a foreign national, companies must ensure that the individual is legally permitted to work in South Africa, as employing someone without valid authorisation can result in penalties for the employer.
This clarity forms the foundation for compliant, fair, and safe hiring practices when employing foreign workers.
Hiring foreign nationals in South Africa is legal — but employers must follow specific compliance steps. Here is a simple, practical checklist to ensure you hire correctly and stay fully compliant with South African law.
Before making an offer, employers must confirm that the applicant is legally allowed to work in South Africa. Always request and check the following:
You can review the official work visa categories here:
Department of Home Affairs – Work Visas Overview:
https://www.dha.gov.za/index.php/immigration-services/work-visa
Permits must be valid, unexpired, and appropriate for the type of work being offered. For example, an asylum seeker permit allows employment, but it must be renewed regularly.
South African employers must meet the following legal requirements when hiring a foreign national:
Hiring someone without a valid work authorisation is a violation of the Immigration Act 13 of 2002, and can lead to penalties or fines for employers.
You can read the legislation here: https://www.gov.za/documents/immigration-act
This checklist ensures employers remain compliant while creating fair, safe, and legal work opportunities for foreign nationals in South Africa.
When hiring a foreign national, employers must understand which documents give someone the legal right to work. Below is a simple breakdown of the most common permits and statuses that allow lawful employment in South Africa.
This is one of the most common work permits issued to foreign nationals.
Key points for employers:
This visa is awarded to individuals with specialised skills that appear on the South African Critical Skills List, issued by the Department of Higher Education and Training (DHET).
Employer notes:
DHET Critical Skills List: https://www.dhet.gov.za/SitePages/CriticalSkills.aspx
This permit is used when companies need to hire a large number of foreign workers for specific roles.
What employers need to know:
Individuals with recognised refugee status have full legal rights to work in South Africa.
Employer notes:
People seeking asylum in South Africa hold an Asylum Seeker Permit (Section 22).
Important for employers:
By understanding these permit types, employers can confidently and legally hire foreign nationals — while avoiding compliance risks and ensuring fair employment practices.
Hiring foreign nationals comes with additional responsibilities, but following a few simple best practices ensures compliance, fairness, and smooth operations for your business. These guidelines help protect both the employer and the employee while maintaining alignment with South African labour laws.
Every employee — including foreign nationals — must have a written employment contract outlining duties, salary, hours, and conditions of employment. This protects both parties and ensures clarity from day one.
Always record the expiry date of an employee's visa, refugee status, or asylum seeker permit. Set reminders to follow up before documents expire.
This helps the employer maintain compliance and gives the employee enough time to renew.
South African labour law requires employers to give every employee a payslip for each payment made. Payslips must include details such as hours worked, deductions, and net pay.
If employees work more than 24 hours per month, employers must register them for UIF (Unemployment Insurance Fund), regardless of nationality.
UIF Employer Obligations: https://www.labour.gov.za/employer-obligations
Foreign nationals must be treated with the same dignity and fairness as South African workers. This includes fair pay, safe working conditions, and protection from discrimination.
This requirement is grounded in the Labour Relations Act, which applies to all employees working in South Africa.
By following these best practices, employers create a compliant, ethical, and supportive workplace — one where foreign nationals can contribute confidently, and businesses can operate securely.
Paying foreign nationals in South Africa can be challenging for employers — not because companies don't want to pay correctly, but because many foreign workers cannot open traditional South African bank accounts. This creates practical payroll problems, especially for businesses that rely heavily on international talent.
Here's what employers need to understand:
Many foreign nationals struggle to open a bank account due to strict FICA and residency requirements. This often affects individuals who hold:
Most banks require proof of address, long-term permits, and additional documents — meaning many eligible workers are excluded from the formal banking system.
This can create several payroll challenges:
These issues make it harder for employers to pay fairly, consistently, and safely — while also reducing financial inclusion for workers.
To avoid these complications, employers are increasingly turning to digital payment solutions that allow foreign workers to receive salary securely — even without a traditional bank account.
The Mama Money Card, for example, is designed specifically for foreign nationals and allows them to receive wages, buy in stores, withdraw cash, and manage their money easily. This ensures employers can pay legally, safely, and on time.
Learn more about how it works here: Mama Money Card
For many South African employers, paying foreign workers through traditional payroll systems is difficult. While permanent residents and long-term visa holders may access banking services, many foreign nationals cannot.
Limitations of traditional payroll:
Workers with short-term permits, asylum seeker documentation, refugee papers, or passports without long-term visas are regularly turned away by local banks.
Cash wages expose both employer and employee to theft, fraud, and incorrect record-keeping. It also increases the risk of non-compliance with UIF, PAYE, and labour regulations.
Without digital records, employers struggle with wage tracking, reporting, and audits, which can lead to fines or disputes.
Because of these issues, many businesses need a payroll solution that works for all workers, regardless of documentation or banking access.
The Mama Money Payroll Solution
The Mama Money Payroll Solution is designed specifically for businesses that employ foreign nationals and need a secure, compliant way to pay staff without South African bank accounts.
A digital payroll payment solution that allows employers to pay foreign workers directly into a secure Mama Money Wallet — no bank account required.
Many workers also choose to use the Mama Money Card for easy cash withdrawals and everyday purchases.
Learn more about the Mama Money Card
Once paid, employees instantly receive their wages in the Mama Money Wallet. From there, they have convenient, flexible options:
This creates a smooth, empowering payroll experience for workers — and a low-admin solution for employers.
Here is a simple checklist employers can follow to stay compliant when hiring foreign nationals:
✔ Verify passport
✔ Verify work permit or visa
✔ Make certified copies of all documents
✔ Confirm the employee has the legal right to work
✔ Record permit expiry dates and schedule reminders
✔ Keep all documentation on file
✔ Use a compliant payroll method (avoid cash payments)
✔ Provide payslips as required by law
✔ Register workers for UIF (if eligible)
✔ Maintain proper contracts according to labour law
Following this checklist helps safeguard your company from penalties while ensuring fair treatment of all employees.
To stay legally compliant and avoid financial or reputational risks, employers should avoid:
Avoiding these mistakes protects both the employer and the workforce.
Q: Can I employ someone with an expired permit?
A: No. South African law prohibits employment of individuals without a valid right to work.
Q: Can asylum seekers work in South Africa?
A: Yes — but only if their asylum permit (Section 22) clearly states they are permitted to work.
Q: Do I need to notify authorities when a foreign employee leaves the company?
A: Yes. Employers are required to inform the Department of Home Affairs.
Q: Can I pay foreign workers in cash?
A: Cash is not recommended. It poses compliance risks and makes accurate record-keeping difficult.
Q: What is the easiest way to pay foreign staff legally?
A: Using a digital solution like the Mama Money Payroll System ensures safe, compliant, trackable payments — even without bank accounts.
Hiring foreign nationals in South Africa is completely legal when done correctly. Employers simply need to verify documents, ensure the right to work, and follow basic labour laws.
The real challenge often lies in payroll — especially when workers cannot open local bank accounts.
The Mama Money Payroll Solution removes this barrier by offering a fast, safe, compliant way to pay foreign workers digitally.
With proper compliance and the right tools, employers can build strong, diverse teams and ensure all staff are paid securely and on time.
Ready to simplify payroll for your foreign workforce? Contact Mama Money to get started today.