Employers must register themselves and their workers with the UIF and pay their contributions every month.

Application

The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers, but not to –

• workers working less than 24 hours a month for an employer;
• learners;
• public servants;
• foreigners working on contract;
• workers who get a monthly State (old age) pension; or
• workers who only earn commission.

Domestic employers and their workers are included under the Act since 1 April 2003. Provides security to workers when they become unemployed.

Registration and Declarations

Employers must register themselves and their worker(s) as soon as they employ someone. Employers must also inform the UIF of changes (e.g. new workers appointed or changes in salary) before the 7th of every month. Based on Legislation in Section 56, of the Unemployment Insurance Act

Deducting contributions

Employers must deduct 1% of their workers’ pay for UIF. Based on Legislation in Section 7, of the Unemployment Insurance Contributions Act

Paying

Employers must pay the 1% they deducted from workers, together with 1% from themselves to the UIF or SARS before the 7th of every month. Based on Legislation in Section 6, Section 8, Section 9, of the Unemployment Insurance Contributions Act
Information provided by The Department of Labour. For more information visit www.labour.gov.za