UIF Registration (Department of Labour)

The UIF is a South African initiative ensuring that employees, like you, have a financial safety net should you face involuntary unemployment. By law, if you work more than 24 hours a month, your employer contributes to this fund on your behalf. It’s a way to ensure you’re looked after even when times get tough. 

Absolutely! If your employer has been contributing to the UIF during your employment, you’re eligible to claim benefits. However, remember that if you’ve resigned, been suspended, or absconded, you won’t be able to make a claim. 

Yes, it is. If you’re working more than 24 hours a month, your employer is legally bound to register you with the UIF and make monthly contributions. This includes all employees, even domestic workers. 

It’s quite straightforward. Both you and your employer contribute 1% of your wages each, making it a total of 2%. So, for every R100 you earn, R1 is deducted from your pay, and your employer adds another R1. 

Some Payroll Services automatically calculate your UIF contributions. 

Great question! The UIF Compliance Certificate is a document that confirms your company is up-to-date with its UIF contributions. If you’re looking to provide services to the government or apply for tenders, having this certificate is now a must. It’s a mark of trustworthiness and compliance. 

You can claim benefits from the UIF for up to 12 months, provided you’ve accumulated enough credit days. Think of it this way: for every four days you’ve worked, you earn one day’s credit.

Excluded Individuals from UIF Contributions:

1. Workers who work less than 24 hours per month

   • If an employee works fewer than 24 hours in a month, they are not required to contribute to UIF.

2. Government Officials

   • The following government positions are exempt from UIF contributions:
   • The President and Deputy President
   • Ministers and Deputy Ministers
   • Members of the National Assembly
   • Permanent delegates to the National Council of Provinces
   • Provincial Premiers and Executive Council Members
   • Members of Provincial Legislatures

3. Traditional Leaders and Municipal Council Members

   • Traditional Leaders, members of the Provincial House of Traditional Leaders, and members of the Council of Traditional Leaders are excluded.
   • Municipal Council members are also not required to contribute.

4. Commission-only Workers

   • If an individual’s income is based entirely on commission, they are exempt from UIF contributions.

Your UIF Contribution Breakdown

• Employee Contribution: Employees must contribute 1% of their gross monthly salary.
• Employer Contribution: Employers are also required to contribute 1% of each employee’s gross salary.

This means the total UIF contribution equals 2% of the employee’s salary – 1% from the employee and 1% from the employer.

Important Earning Cap

There’s a limit on the salary amount subject to UIF contributions:

• From 1 October 2012, contributions were capped at salaries above R14 872 per month (R178 464 per year).
• From 1 June 2021, the cap increased to salaries above R17 712 per month (R212 544 per year).

For example, if an employee earns R20 000 per month, their UIF contribution is calculated based on R17 712 (not the full R20 000).