The Unemployment Insurance Fund (UIF) is a government initiative designed to provide short-term financial support to workers who are unable to earn an income due to unemployment, maternity, parental leave, illness, or adoption leave. It also aids the dependents of a deceased employee.
As a business owner, it is essential to comply with UIF regulations by registering your employees and ensuring timely contributions. Below is a guide on when and how to register for UIF and the benefits of compliance.
Who Needs to Register for UIF?
All businesses that employ staff working more than 24 hours per month, including employees on probation, must register with the UIF within 21 days of hiring. Both the employer and employee each contribute 1% of the employee’s salary, with a combined maximum of R354 per month (R177 from both employer and employee) for employees earning more than R 17 712.
Employees Exempt from UIF Contributions
Not all workers are required to contribute to the UIF. The following are exempt:
- Workers who earn commission only.
- Employees working less than 24 hours per month (e.g., seasonal workers).
- Public servants employed by national, provincial, or municipal government institutions.
- Individuals on formal learning programs (learners).
- Foreign workers on fixed-term contracts.
- Individuals receiving a state pension (such as an old-age grant).
How to Register for UIF
You can register for UIF through:
- The Department of Labour – This is mandatory for all businesses employing eligible staff.
- SARS (South African Revenue Service)– You must register with SARS if any of the following apply
- You are required to pay PAYE (Pay-As-You-Earn).
- Y our business pays the Skills Development Levy (SDL).
- You voluntarily register for UIF contributions through SARS.
Deadlines for UIF Payments
UIF contributions are due by the 7th of each month. If the 7th falls on a weekend or public holiday, payment should be made on the last business day before.
Why Should You Register for UIF?
Registering with the UIF ensures that:
- Your business complies with South African labour laws.
- Employees are protected and can claim benefits when unable to work.
- Your business avoids penalties for non-compliance.
Ensuring your business is registered with the UIF and making contributions on time is essential for both compliance and the well-being of your employees.
For more information, contact us for consultation UNIDA Gontor.