South Africa

The insurance industry in Africa represents only a small percentage of global insured catastrophe losses. Still, despite the low levels of insurance uptake, there is an increasing level of interest and focus from major international brokers, insurers, and reinsurers. South Africa’s large population and expanding middle class means the insurance market has high growth potential. The competitive landscape is diverse and offers a variety of providers to choose from.

Asinta Partner
Nick Tennant

Tennant Group

More Info

Mandatory employee benefits in South Africa

All employers and employees must contribute an equal 1% and 1% to the UIF. As of 1 June 2021, the maximum earnings ceiling is R17 712 per month or R212 544 annually.

Holiday Pay

All workers are legally entitled to 21 days of consecutive paid holiday per year or 15 days in the case of 5-day work weeks.


Supplementary Employee Benefits in South Africa


The government-funded old-age grant is largely insufficient, and therefore Employer-based retirement funding is highly encouraged and greatly valued by employees. When an employer sets up a fund, membership in the fund is compulsory for all employees within a specified class or category. The most popular type of fund is a defined contribution fund, inclusively priced for risk benefits, admin fees, and other costs.

Healthcare (Medical Aid & Medical Insurance)

The public healthcare system in South Africa is overburdened, under-resourced, and largely mismanaged, leaving patients exposed and at risk. Most employed South Africans therefore seek private healthcare cover, a highly valued benefit. The most valued benefit by employees. Medical Aid is a community-rated and legislated product. This is, by a large margin, the best way to get access to private healthcare. Medical Insurance is a significantly lower level of cover and is treated and priced as an insured product. Typically reserved for lower-income earners.

Life & Disability

Typically, group life insurance schemes include lump sum benefits in case of death and disability and usually amount to a multiple of each employee’s salary.

Health and Wellness Benefits

Employee Assistance Program (EAP) – services include trauma counseling, financial management, legal support, and access to trained psychologists to assist with stress and burnout.

Healthy Lifestyle and Rewards

An add-on benefit offered by some leading medical scheme providers. These plans are geared at helping members live a better, healthier, and happier life. Members earn great rewards, discounts, and cash back when they improve their health, safety, fitness, and finances. The benefit is generally offered by employers on a voluntary basis to members and paid for by the employee.


Tennant provided this information on employee benefits in South Africa. If you need support with your benefits program in the country, contact Asinta, and we will put you in touch with the experts at Tennant.




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