What is Unemployment Insurance Fund (UIF)?
The Unemployment Insurance Fund (UIF) provides short term relief to workers when they become unemployed or are unable to work because of illness, maternity or adoption leave and to provide relief to the dependants of a deceased contributor.
Who is it for?
All employees, as well as their employers, are responsible for contributions to the UIF. However, an employee is excluded from contributing to the UIF if he or she–
- 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
- 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.
Registration
You can register at SARS or at the UI Commissioner’s office. Employers may register, submit returns and employee information, and pay UIC via the UI Commissioner’s online service available on www.ufiling.co.za. Employers required to register and pay UIC to SARS may do so via the SARS online service on www.efiling.co.za.
How much do you need to pay?
The employer must pay a total contribution of 2% of the employees’ remuneration (1% contributed by the employee and 1% contributed by the employer). A contribution shall not apply to so much of the remuneration paid or payable by an employer to an employee, as exceeds R 17 712 per month (R 212 544 annually).
How and when should it be paid?
The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer (EMP201). EMP201 is a payment declaration in which the employer declares the total payment together with the allocations for PAYE, SDL, UIF and/or ETI. It must be paid within seven days after the end of the month during which the amount was deducted.
