The Unemployment Insurance Fund (UIF) provides short-term financial relief to workers who become unemployed, take maternity leave, adopt a child, or are unable to work due to illness. As an employer, you must register with UIF, deduct contributions from employee wages, and submit monthly declarations.
What is UIF?
The Unemployment Insurance Fund is a fund established under the Unemployment Insurance Act (Act 63 of 2001). It provides benefits to employees who lose their income due to unemployment, illness, maternity, or adoption.
Key Differences: UIF vs COIDA
| Aspect | UIF | COIDA |
|---|---|---|
| Purpose | Unemployment, maternity, illness (non-work) | Workplace injuries and diseases |
| Who pays | Employer AND employee (1% each) | Employer only |
| Frequency | Monthly contributions | Annual assessment |
| Covers | All employees including domestic workers | All employees except domestic workers |
| Administered by | Department of Employment and Labour | Compensation Fund |
Who Must Register?
Every employer in South Africa who employs one or more workers must register with UIF and contribute on behalf of their employees.
Employers Who Must Register
- Private companies (Pty Ltd)
- Close corporations (CC)
- Sole proprietors with employees
- Partnerships
- Non-profit organisations
- Trusts with employees
- Households employing domestic workers
Employees Who Must Be Covered
- All full-time employees
- Part-time employees (working more than 24 hours per month)
- Temporary employees
- Contract workers (if not independent contractors)
- Domestic workers
- Seasonal workers
Who is Exempt
- Employees working less than 24 hours per month for a single employer
- Learners under apprenticeship contracts (unless specified in the contract)
- Certain government employees who contribute to the Government Employees Pension Fund
- Foreigners with work permits for a specific employer(if leaving SA on contract completion)
- Employees earning more than the threshold (R212,544.00 per year in 2024 – check current threshold)
Registration Process
New employers must register with UIF within 30 days of employing their first worker.
Documents Required
The employer registration form for UIF.
CIPC certificate (CM29) or relevant registration document.
Certified copies of ID documents.
Business address confirmation.
How to Register
Online via uFiling
Register on the uFiling system at www.ufiling.co.za . Create an account, complete the registration, and upload supporting documents. This is the fastest method.
At a Labour Centre
Visit your nearest Department of Employment and Labour office with all required documents. Staff will process your registration and issue a UIF reference number.
Contribution Rates
UIF contributions are shared equally between employer and employee. The total contribution is 2% of the employee's remuneration.
How Contributions Are Calculated
| Component | Rate | Paid By |
|---|---|---|
| Employee contribution | 1% of remuneration | Deducted from employee's pay |
| Employer contribution | 1% of remuneration | Additional cost to employer |
| Total | 2% | Paid monthly by employer |
What Counts as Remuneration
- Basic salary/wages
- Overtime pay
- Commission
- Bonuses
- Leave pay
- Payment in kind (non-monetary benefits)
What's Excluded
- Reimbursement of work-related expenses
- Gratuities (voluntary payments from customers)
- Retirement fund contributions
- Medical aid contributions
Monthly Declarations (UI-19)
Every month, employers must submit a UI-19 declaration listing all employees and their contributions for that month.
Declaration Deadline
What to Include in UI-19
ID number, name, surname for each employee.
Total earnings for each employee.
2% contribution amount for each employee.
Number of days worked in the month.
How to Submit
uFiling Online
Log into uFiling, navigate to declarations, and enter employee data for the month. The system calculates totals automatically. You can also upload a CSV file if you have many employees.
Manual Submission
Complete paper UI-19 forms and submit at a Labour Centre with payment. This is more time-consuming and not recommended for regular use.
Payment Methods
UIF contributions must be paid monthly, ideally when submitting your declaration.
Payment Options
EFT Payment
Pay directly into the UIF bank account. Use your UIF reference number as the payment reference.
Bank Payment
Pay at any major bank using the payment slip generated by uFiling.
SARS e@syFile
If you use e@syFile for PAYE, you can include UIF payments through the integrated system.
Labour Centre
Pay in person at a Labour Centre (cash, card, or EFT confirmation).
UIF Banking Details
| Bank | Standard Bank |
| Account Name | Unemployment Insurance Fund |
| Account Number | 230252525 (verify on uFiling) |
| Branch Code | 051001 |
| Reference | Your UIF Reference Number |
What Employees Can Claim
When employees need to claim from UIF, they apply through the Department of Employment and Labour. As the employer, you may need to provide supporting documents.
Types of Benefits
Unemployment Benefits
For employees who lose their jobs. Up to 238 days of benefits based on work history and reason for unemployment.
Maternity Benefits
For pregnant employees taking maternity leave. Up to 4 months at a percentage of salary.
Adoption Benefits
For employees adopting children under 2 years old. Similar to maternity benefits.
Illness Benefits
For employees unable to work due to illness (not work-related) after sick leave is exhausted.
Employer's Role in Claims
- UI-19 history: Ensure all monthly declarations were submitted – gaps can delay claims
- Service certificate (UI-2.8): Provide when an employee leaves, showing employment dates and reason for termination
- Confirmation of earnings: Verify salary information if requested by UIF
Domestic Workers
Employers of domestic workers (cleaners, gardeners, au pairs, carers) must also register for and pay UIF contributions.
How to Register
Register on uFiling
Create an employer account on uFiling. You'll register as an individual employer, not a company.
Add Domestic Worker Details
Enter your domestic worker's ID number, name, and monthly salary. The system will calculate contributions.
Pay Monthly
Submit declarations and pay contributions monthly. You can pay the full 2% yourself or deduct 1% from your worker's wages.
Common Problems & Solutions
Employee can't claim because declarations are missing
Submit all outstanding UI-19 declarations immediately. Back-dated declarations may incur penalties but are necessary for employee claims. Once submitted, claims can typically proceed.
Payment not reflecting on uFiling
Payments can take 3-5 business days to reflect. Ensure you used the correct reference number. If it still doesn't reflect, contact UIF with your proof of payment.
Forgot uFiling password
Use the “Forgot Password” function on uFiling. If that doesn't work, visit a Labour Centre with your ID and company documents to reset your account.
Employee ID number not found
The employee may not be in the Home Affairs system or the ID may be incorrect. Verify the ID number carefully. Foreign nationals need valid work permits.
Late declaration penalties
Penalties for late declarations accumulate. Submit as soon as possible to stop further penalties. Contact UIF about arranging payment of arrears.
Frequently Asked Questions
Is UIF mandatory for all employers?
Yes, all employers who employ workers for more than 24 hours per month must register for and pay UIF. This includes domestic employers.
Can I use payroll software to submit UIF?
Yes, many payroll systems can generate UIF submissions. Check if your payroll software has uFiling integration. You can also export CSV files for upload.
What if I overpay UIF contributions?
Overpayments can be offset against future contributions or refunded. Contact UIF with proof of overpayment to arrange a refund or credit.
Do directors need to be registered for UIF?
Directors who receive a salary through payroll should be registered. Directors who only receive dividends or director's fees may not need to be included – consult a payroll specialist.
How long must I keep UIF records?
Keep UIF records for at least 5 years. This includes declarations, proof of payment, and employee payroll records used for calculations.
Is UIF required for tender submissions?
UIF compliance isn't typically checked directly in tenders, but overall labour compliance is. Being non-compliant with any labour law creates legal risk.
Related Resources
Need Help With UIF Registration & Compliance?
Get quotes from verified payroll specialists and labour compliance consultants who can handle your UIF registration and monthly declarations.
- Verified & B-BBEE compliant providers
- Free quotes, no obligation
- Compare multiple providers
- POPIA compliant process