A total of 2% of the employee’s monthly salary must be contributed to the Unemployment Insurance Fund, 1% is contributed by the Employer and the other 1% is contributed by the employee. All monies received from the employer, except for commission, are regarded as earnings, and contributions must be paid on them.
Benefits covered by UIF:
- Unemployment benefits
- Illness benefits
- Maternity benefits
- Death benefits
Unemployment Insurance Contributions Act applies to all employers and workers, except:
- Workers working less than 24 hours a month for an employer;
- Public servants
- Workers who only earn commission
Domestic employers and their workers are included under the Act since 1 April 2003.
The contributions are paid to the Unemployment Insurance Fund (UIF) or to the South African Revenue Services (SARS). Employers must pay this contribution to the UIF or SARS before the 7th of every month. All employees must register with the UIF or SARS.
We can help employers and employees to register with the UIF and make sure that the returns and payments are submitted on time as well as keep this up to date to avoid penalties and interests that SARS may impose.
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