Payroll Frequency & Timing
Choose the right payroll frequency for your South African business. Learn about monthly, bi-weekly, and weekly cycles, their impact on compliance, cash flow, and employee satisfaction.
Payroll Frequency Options
Monthly
Standard practice for most South African businesses
Advantages
- Lower administrative overhead
- Easier budgeting and forecasting
- Simplified SARS submissions
- Standard employment contracts
Disadvantages
- Longer gaps between payments
- Potential cash flow issues for employees
- Less flexibility for varying hours
Best For
Salaried employees, stable businesses, most companies
Bi-weekly (Fortnightly)
Payment every two weeks, typically on same weekday
Advantages
- Better cash flow for employees
- 26 pay periods per year
- Good for hourly workers
- Easier overtime calculations
Disadvantages
- Higher administrative costs
- More complex budgeting
- Additional SARS submissions
- Contract adjustments needed
Best For
Hourly workers, retail, hospitality, manufacturing
Weekly
Payment every week, highest frequency option
Advantages
- Excellent employee cash flow
- Immediate overtime payment
- Good for temporary workers
- Quick adjustment to hours
Disadvantages
- Very high administrative costs
- Complex SARS compliance
- Difficult budgeting
- Not standard in SA market
Best For
Temporary staff, daily workers, special circumstances
Impact Comparison
| Factor | Monthly | Bi-weekly | Weekly |
|---|---|---|---|
| SARS Compliance | EMP201 due 7th of following month | More frequent reconciliations required | Complex monthly SARS submissions |
| Cash Flow Impact | Large monthly outflows | Moderate bi-weekly outflows | Small weekly outflows |
| Administrative Cost | Low - 12 runs per year | Medium - 26 runs per year | High - 52 runs per year |
| Employee Preference | Acceptable for salaried staff | Preferred by hourly workers | Loved by daily/temporary workers |
Payroll Calendar Best Practices
Month-End Processing
Process payroll 3-5 days before month-end to allow for corrections
Example: For January 31 payment, process by January 26-28
Banking Days
Account for bank processing time (usually 1-2 business days)
Example: For Friday payment, submit to bank by Wednesday
Weekend Adjustments
Move payment dates forward if they fall on weekends or holidays
Example: If 31st is Sunday, pay on Friday 29th
SARS Deadlines
Always ensure PAYE submissions meet the 7th deadline
Example: January payroll PAYE due by February 7th
Changing Payroll Frequency
Review Current Contracts
Check employment contracts for payment frequency clauses
Assess Financial Impact
Calculate administrative costs and cash flow implications
Consult Employees
Survey staff preferences and explain changes if needed
Update Systems
Configure payroll software for new frequency
Notify Stakeholders
Inform bank, SARS, and other relevant parties
Test Run
Process a test payroll to ensure everything works
Our Recommendations
For Most Businesses
Monthly Payroll
Stick with monthly payroll for predictable costs, easier compliance, and industry standard practices.
For Hourly Workers
Bi-weekly Payroll
Consider bi-weekly for businesses with variable hours, overtime, or hourly workers who prefer regular income.
Related Topics
Get Your Payroll Timing Right
PayMax supports all payroll frequencies with automated calculations, compliance tracking, and flexible scheduling.