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    Payroll Concepts

    Labour broker

    A person who supplies workers to a client for reward — typically requires a SARS PAYE directive to reduce withholding.

    Full definition

    A labour broker is a person who provides workers to a client in return for reward. Under the Fourth Schedule, payments to a labour broker are treated as remuneration and subject to PAYE unless the broker holds a valid Exemption Certificate (IRP30) from SARS.

    See also

    PAYE
    Pay-As-You-Earn is the monthly income tax an employer withholds from each employee's salary and pays over to SARS.

    Automate Labour broker in your payroll

    Payroll Africa handles Labour broker calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Browse the full South African payroll glossary — 55 terms explained.

    Let payroll handle Labour broker for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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