Free Payroll Software South Africa: How openHR Empowers Small Businesses
2 Nov 2025
Running a small business in South Africa comes with enough challenges - your payroll software shouldn’t be one of them. That’s where openHR steps in: a proudly South African, cloud-based payroll and HR platform offering a robust free plan designed to simplify compliance, reduce admin, and empower small teams to thrive.
Let’s explore the free features included in openHR and how each one can make a tangible difference for small businesses.
🌟 What’s Included in openHR’s Free Plan?
openHR’s free plan is packed with features that support small businesses without hidden costs or limitations. Here’s what you get:
- Unlimited Employees: Whether you’re a solo founder or scaling up, you can onboard as many staff as needed.
- Unlimited Payslips: Generate payslips for any pay cycle - monthly, weekly, or custom - without restrictions.
- Rollover Free Periods: Skip a month if needed; your data stays intact and ready when you return.
- Custom Leave: Create leave types that reflect your company’s values, like study leave or mental health days.
- Loan Applications & Forms: Employees can request loans digitally, streamlining approvals and record-keeping.
- Tax Directive Automation: Automatically apply SARS tax directives - no manual submissions required.
- EMP201 Reports: Generate PAYE, UIF, and SDL reports ready for SARS submission.
- UIF Submissions: Submit UIF declarations directly to the Department of Labour.
- IRP5 Generation: Create year-end IRP5s for tax compliance with ease.
- Manual UI19s: Generate UI19 forms for terminations or audits.
- Expense Claim Management: Employees submit claims through WhatsApp; managers approve with a click.
- Performance Reviews: Run reviews to support employee growth and feedback.
- Surveys: Collect anonymous feedback to improve team culture.
- Training Register: Track internal and external training for compliance and development.
- Disciplinary Code: Maintain digital records of disciplinary actions and policies.
- Advanced Reporting & Exports: Export payroll and HR data for audits or accounting.
- SARS & Labour Compliance: Built-in compliance with South African legislation.
- Permit Tracking: Manage work permits and expiry dates for foreign staff.
- Transgression Management: Log and track workplace incidents.
- Clothing Report: Track uniform or PPE allocations.
- Telephone Extensions: Keep a directory of internal contact numbers.
- Salary Schedule Report: View and export monthly salary breakdowns.
- Document Notes: Add notes to employee files for context or follow-ups.
- Audit Trail: Every action is logged for transparency and internal control.
- Custom Payslip Message: Add personalised notes to payslips - celebrations, bonuses, or reminders.
- Monthly or Day-to-Day Calculations: Choose salary calculation methods to suit contractors or shift workers.
💡 Real-World Examples
- A small construction firm uses the Clothing Report to help issue PPE to workers, ensuring safety compliance and reducing loss.
- A startup with remote staff uses Custom Leave to offer flexible time-off policies like “mental health days.”
- A local bakery with 8 employees uses Unlimited Payslips and EMP201 Reports to stay SARS-compliant.
- A freelance agency uses Performance Reviews and Surveys to build a feedback culture, even with part-time contributors.
🎯 Why openHR Stands Out
Unlike many “free” tools that limit functionality or employee count, openHR’s free plan is genuinely usable at scale. It’s built for South African compliance, with features tailored to local tax, UIF, and labour laws. For small businesses, this means:
- No hidden costs
- No vendor lock-in
- No compromise on compliance
If you’re a small business owner in South Africa looking for a free, powerful, and local payroll solution, openHR is more than just software - it’s a legacy move toward transparency, dignity, and control.
