If you employ even one person in South Africa, you almost certainly have to register for and pay UIF. Getting it right is not complicated, but getting it wrong — or skipping it — can lead to penalties and leaves your staff unable to claim when they need to. Here’s the practical employer guide.
Yes, if you pay or are liable to pay remuneration to one or more employees who work 24 hours or more a month. You register with SARS (if you’re already registered for PAYE) and/or with the UIF Commissioner. Domestic employers — people who employ a gardener, cleaner or nanny — are included too.
The contribution is simple: 1% from the employee and 1% from you, a total of 2% of the employee’s remuneration. The employee’s 1% is deducted from their salary; you add your 1% and pay both over together.
You can work out the exact figures for any salary — and your total monthly payroll UIF across all staff — using the Contribution tab in our calculator.
UIF must be paid to SARS within 7 days after the end of each month. If you’re registered for PAYE, you declare UIF on the monthly EMP201 along with PAYE and SDL. If the deadline falls on a weekend or public holiday, pay on the last business day before it.
Paying the money is only half the job. You must also submit monthly employee declarations (the UI-19 information) so each worker’s contribution record is updated. This is the step employers most often neglect — and when they do, their employees’ credit days come up short at claim time, even though the money was paid. See our UI-19 explainer.
Failing to register, pay, or declare can result in penalties and interest, and in serious cases, prosecution under the relevant Acts. Beyond the legal risk, the real-world cost lands on your employees, who may be denied benefits they were counting on. If you’ve fallen behind, it’s usually possible to back-register and settle arrears — do it sooner rather than later.
Do those four things every month and both you and your staff are covered.
If you employ someone on R9,000 a month, you deduct 1% (R90) from their pay and add your own 1% (R90). You pay R180 to SARS for that employee each month.
If you employ a manager on R30,000 a month, the ceiling applies. You calculate 1% of R17,712, which is R177.12 from the employee and R177.12 from you — R354.24 in total, no matter how far above the ceiling they earn.
For a small team, add each employee’s combined contribution together to get your monthly UIF liability. The Contribution tab in our calculator lets you enter a salary and a number of employees to estimate the total quickly. Remember that every employee is capped individually at the R17,712 ceiling.
If you employ a domestic worker — a gardener, cleaner, nanny or driver — for 24 hours or more a month, you are an employer for UIF purposes and must register and contribute. Many households do not realise this. Registration can be done through the Department of Employment and Labour, and it protects your worker’s right to claim later.
Issue payslips, keep proof of your monthly payments, and submit your declarations on time. When an employee eventually claims, the fund relies on your declarations. If they are missing, your former employee’s payout can be delayed or reduced through no fault of their own. Good records also protect you if compliance is ever questioned.
Yes. If you employ one or more workers who work 24 hours or more a month, you must register for UIF and pay contributions, including domestic employers.
The employer pays 1% of the employee's remuneration and deducts another 1% from the employee, for 2% total. Contributions are capped at the R17,712 monthly ceiling, so the maximum is R177.12 each per high earner.
Within 7 days after the end of each month. If you are registered for PAYE, UIF is declared on the monthly EMP201 with PAYE and SDL.
Because paying the money is not enough. Monthly declarations update each employee's contribution record. Without them, your employees' credit days can come up short when they try to claim.
This guide is general information and estimate-based explanation, not financial or legal advice. UIF rules can change — always confirm with the Department of Employment and Labour or SARS.