Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in South Africa if the relationship looks like employment. |
| Employee via EOR | $68,388 – $68,388 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
South Africa contractor risk: The BCEA presumption of employment applies to those earning below the earnings threshold when certain factors exist; misclassification can trigger PAYE, UIF and labour claims. Moderate risk. Not legal advice.
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Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.