If you’re running a business in South Africa, payroll is one of those “non-negotiable” admin tasks. Your team needs to be paid accurately and on time, and SARS expects its cut — every month, without fail.
That’s why many business owners ask:
“How much do payroll services actually cost?”
The short answer: it depends.
The cost will vary based on how many employees you have, how often you pay them, what’s included in the service, and whether you outsource or keep it in-house.
In this guide, we’ll break down:
- What affects payroll pricing
- Common pricing models in South Africa
- Typical cost ranges for small, medium, and large businesses
- What’s included (and what’s not)
- Outsourcing vs. in-house comparisons
- How to get the best value
1. What Affects Payroll Service Costs?
Several factors influence the price you’ll pay for payroll services. Knowing these helps you understand quotes and choose the right service.
1.1 Number of Employees
Most providers charge per employee (often called “per payslip” fees).
- Smaller teams pay more per employee because there’s no volume discount.
- Larger teams get a lower per-employee rate, but the total bill will still be higher.
💡 Example:
- 1 employee at R250/month = R250 total
- 10 employees at R100 each = R1,000 total
- 50 employees at R60 each = R3,000 total
1.2 Payroll Frequency
How often you run payroll matters.
- Monthly payroll is the cheapest.
- Weekly or bi-weekly payroll costs more because the provider processes payroll multiple times per month.
💡 If your employees are paid weekly instead of monthly, that’s 4x more processing runs — which can quadruple your processing costs.
1.3 Services & Features Included
Basic packages typically include:
- Salary calculations
- Payslip generation
- PAYE, UIF, SDL submissions to SARS
Higher-end packages may also include:
- Leave tracking
- Employee self-service (ESS) portals
- Year-end EMP501 reconciliations & IRP5 certificates
- HR reports
The more features, the higher the monthly fee.
1.4 Setup & Admin Fees
Many providers charge a once-off onboarding fee to:
- Load employee details
- Set up tax and UIF accounts
- Configure payroll software
Other possible admin costs:
- Adding/removing employees mid-year
- Extra off-cycle pay runs
- Re-processing payroll for corrections
1.5 Payroll Complexity
Straightforward payroll (same salaries every month) is quick and cheaper.
Complex payroll (e.g., sales commissions, overtime, multiple allowances, garnishee orders) takes more time and skill — and will be priced higher.
2. Common Payroll Pricing Models in South Africa
2.1 Monthly Base Fee + Per-Employee Fee
A set base cost plus a per-employee rate.
- Example: R500/month base fee + R50 per employee.
- Scales with your team size.
2.2 Per Payslip Pricing
Pay only for payslips processed each month.
- Typical rates: R38 – R88 per payslip, with an average of ±R63.
- Some providers have minimum monthly fees (e.g., R5,500 for up to 40 employees).
2.3 Flat Monthly Packages
Popular with small businesses for predictable costs.
- Example: 1 employee = R279/month
- Example: 2 employees = R449/month
These usually include standard processing, submissions, and basic reporting.
2.4 Hourly Rates
Some accountants/bookkeepers bill by the hour.
- Bookkeepers: R500 – R1,000/hour
- Accountants: R650 – R1,850/hour
Best for very small, simple payrolls or occasional help.
3. Typical Payroll Costs by Business Size
| Business Size | Per Employee/Month | Estimated Monthly Total |
|---|---|---|
| Micro (1–2 staff) | R200 – R300 | R279 – R449 |
| Small (3–10 staff) | R100 – R150 | R500 – R1,500 |
| Medium (11–50) | R60 – R100 | R1,500 – R5,000 |
| Large (50+) | R38 – R80 | R5,000+ |
💡 Observation: While the per-employee rate drops with larger teams, total monthly spend still increases.
4. What’s Usually Included in Payroll Services?
Standard inclusions:
- Salary calculations & payslip generation
- PAYE, UIF, SDL calculations and submissions
- UIF declarations to the Department of Labour
- Monthly payroll reports
Often included in higher-end packages:
- EMP501 reconciliations & IRP5/IT3(a) certificates
- Employee self-service portals
- Leave management systems
5. What’s Usually NOT Included (Extra Charges)
You might pay extra for:
- SARS disputes or audits
- Year-end processing (if not in your plan)
- Additional pay runs
- HR advisory services
- Complex custom reporting
6. Outsourced Payroll vs. In-House Processing
| Factor | Outsourced Payroll | In-House Payroll |
|---|---|---|
| Cost | Predictable per-employee/package fee | Staff salaries + software subscription |
| Expertise | Access to payroll specialists & compliance knowledge | Dependent on internal skills |
| Time | Minimal effort from your team | Staff/admin time required |
| Scalability | Easy to adjust with staff changes | May require more hires/software |
💡 Why many SMEs outsource: It’s often cheaper and more reliable than hiring a full-time payroll administrator — especially if you work with a small-to-mid-sized accounting firm that can handle payroll alongside your bookkeeping and tax.
7. How to Get the Best Value
- Be organised: Keep employee data and timesheets accurate.
- Know your needs: Don’t pay for features you won’t use.
- Ask about extras: Check if year-end filings and ESS portals are included.
- Choose scalable services: So you don’t need to switch providers as you grow.
Final Thoughts
So, how much do payroll services cost in South Africa?
- Small businesses: R500 – R1,500/month
- Medium businesses: R1,500 – R5,000/month
- Large businesses: R5,000+/month
On average, expect R60–R80 per employee per month for a reliable outsourced solution.
The best choice is one that fits your budget and takes the stress of compliance off your plate. For many SMEs, a small-to-mid-sized accounting firm is the sweet spot — giving you personal service, a team of experts, and competitive pricing.
At Zuva Financial Services, we make payroll painless — whether you have 1 employee or 100. We’ll handle the calculations, submissions, and reporting so you can focus on running your business.
