Unemployment Insurance Fund(UIF) Everything you need to know The Unemployment Insurance Fund contributes to the alleviation of poverty in South Africa by providing short-term unemployment insurance to all workers who qualify for unemployment related benefits.
The unemployment insurance system in South Africa is governed by the following legislation:
- Unemployment Insurance Act, 2001 (the UI Act)
- Unemployment Insurance Contributions Act, 2002 (the UIC Act)
These Acts provide for the benefits, to which contributors are allowed, and the imposition and collection of the contributions to the UIF, respectively, and came into operation on 1 April 2002.
Who is it for?
- Is employed by the employer for less than 24 hours a month
- Is employed as an officer or employee in the national or provincial sphere of Government
- Is the President, Deputy President, a Minister, Deputy Minister, a member of the National Assembly, a permanent delegate to the National Council of Provinces, a Premier, a member of an Executive Council or a member of a provincial legislature or
- Is a member of a municipal council, a traditional leader, a member of a provincial House of Traditional Leaders and a member of the Council of Traditional Leaders.
What steps must I take?
- Doesn’t need to register with SARS for Employees’ Tax purposes
- Hasn’t voluntarily registered with SARS as an employer
- Isn’t liable for the payment of the skills development levy.
- Pays or is liable to pay remuneration to an employee must contribute on a monthly basis to the UI Fund.
How much do you need to pay?
- The amount of the contribution due by an employee, must be 1% of the remuneration paid by the employer to the employee.
- The employer must pay a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer) within the prescribed period.
- A contribution shall not apply to so much of the remuneration paid or payable by an employer to an employee, as exceeds:
- With effect from 1 October 2012 – R 14 872 per month (R 178 464 annually)
- With effect from 1 June 2021 – R 17 712 per month (R 212 544 annually).
- Excess amounts shouldn’t be included as remuneration for the purposes of UIF contributions.
- The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer (EMP201). The EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or Employment Tax Incentive (ETI), if applicable.
- A unique Payment Reference Number (PRN) will be pre-populated on the EMP201, and will be used to link the actual payment with the relevant EMP201 payment declaration.
How and when should it be paid?
- eFiling
- Electronic payments through the internet (EFT)
- At a branch of one of the relevant approved banking institutions.
Offenses
- Fails to:
- Submit a return or document to SARS or
- Issue a document to a person as needed.
- Fails or neglects to:
- Deduct or withhold or pay to SARS contributions to the UIF or
- Furnish, produce or make available any information or document required by SARS or
- Register or let SARS know of a change in registered details or
- Keep records as needed.
- Submits a false certificate or statement.
- Refuses or neglects to take an oath or make a solemn declaration.
Need help?
For more information refer to the guides below.
To access this page in different languages click on the links below:
- Sesotho
- IsiZulu
- Afrikaans
- Sepedi
Frequently Asked Questions (FAQs)
What is UIF?
UIF is a South African fund that provides temporary financial support to qualifying workers.
Who qualifies for UIF?
Most employees working more than 24 hours monthly qualify for UIF.
How much is UIF contribution?
Total UIF contribution is usually 2% of salary.
Can domestic workers claim UIF?
Yes, registered domestic workers can claim UIF benefits.
Can foreign workers receive UIF?
Yes, many legally employed foreign workers qualify.
What is uFiling?
uFiling is the online platform used for UIF services and claims.
How do I apply for UIF?
You can apply through uFiling or labour offices.
How long does UIF take to pay?
Processing times vary from weeks to months.
Can I check UIF status online?
Yes, status checks can be done through uFiling.
What documents are needed for UIF claims?
Documents include ID, banking details, and employment records.
What are UIF credit days?
Credit days determine how long benefits may be paid.
What happens if my employer does not pay UIF?
Your claim may be delayed and the employer may face penalties.
Can UIF claims be rejected?
Yes, claims may be declined if requirements are not met.
Does UIF cover maternity leave?
Yes, maternity benefits are available for qualifying workers.
Can I claim UIF after retrenchment?
Yes, retrenched workers may qualify for unemployment benefits.
What is UIF arrears?
UIF arrears are unpaid contributions owed by employers.
How do I reset uFiling password?
Use the “Forgot Password” option on the uFiling portal.
Can employers register employees online?
Yes, employers can use uFiling for registration and declarations.
Why is my UIF claim delayed?
Delays may result from verification or missing documents.
Is UIF mandatory in South Africa?
Yes, most employers and employees must contribute to UIF.
