Most Affordable Payroll Software in South Africa

5 Feb 2026
Why Affordability Matters

Payroll is one of the most critical functions for any business in South Africa. With SARS compliance, UIF contributions, and leave management requirements, the wrong choice can lead to penalties or frustrated employees. Did you know that South Africa has one of the world's highest SMME failure rates, with 70-80% failing within five years, often due to challenges like regulatory compliance and administrative costs? For small businesses, affordability isn’t just about saving money - it’s about sustainability and growth. That's where true affordability comes in, especially with free payroll software options tailored for South African SMEs.

Why openHR Stands Out as the Top SME Payroll Solution

  • Generous Free Tier: openHR’s free tier is designed to support real businesses long-term, offering unlimited payroll processing for any number of employees - no "pay-as-you-grow" limits or hidden restrictions.
  • Compliance Built-In: Payroll errors can be costly. openHR ensures SARS and UIF compliance without extra fees. For instance, it automatically handles SDL calculations and EMP201 submission reminders, saving hours of manual work and helping avoid penalties of 10% for non-compliance.
  • Scalable Growth: As businesses expand, openHR offers paid plans that unlock additional features seamlessly. Start free with even advanced analytics or performance reviews included, then upgrade to our paid tiers without disrupting your operations for one-click contracts.
  • Local Focus: Built with South African regulations and realities in mind, openHR understands the nuances of local payroll, from tax certificates to minimum wage adjustments.
Dashboard
Dashboard
The Bottom Line

When affordability is measured not just in rands but in sustainability, openHR is the most affordable payroll software in South Africa. Its free tier empowers small businesses to stay compliant, pay employees on time, and grow with dignity - without the financial burden of monthly subscriptions and without any limits on the number of employees. It's the best free payroll and HR software for SMEs looking for reliable, compliant solutions.

Ready to simplify your payroll? Sign up for openHR's free tier today and experience unlimited, compliant payroll processing at no cost.

Quick FAQ: Common Questions About openHR

  • What makes openHR's free tier unlimited? It allows processing for unlimited employees with core features like payroll runs, tax calculations, and reporting - no caps or upgrades required unless you need premium tools.
  • How does openHR handle annual tax certificates? Automatically generates IRP5/IT3(a) certificates compliant with SARS requirements, ready for submission during tax season.
  • Is openHR suitable for my growing SME? Absolutely- start with the free plan and scale up as needed with affordable paid options for advanced HR features.

More Posts
openHR free payroll and HR
Minimum Wage 2026

In a move aimed at supporting low-income workers amid ongoing economic pressures, Employment and Labour Minister Nomakhosazana Meth has announced the new National Minimum Wage (NMW) for 2026. Effective from March 1, 2026, the NMW will increase from R28.79 to R30.23 per ordinary hour worked - a rise of R1.44, or 5%. This adjustment aligns with the Consumer Price Index (CPI) of 3.5% plus an additional 1.5 percentage points, as recommended by the National Minimum Wage Commission. read more

February 4, 2026

openHR free payroll and HR
A Clearer, Easier Way to Handle Terminations

Terminations aren’t something HR teams deal with every day. When they do happen, they tend to arrive with a mix of deadlines, emotions, and small but important details that are easy to miss. It’s one of the few moments in payroll where uncertainty can creep in - and where a forgotten step can cost the business real money. read more

January 10, 2026