UIF Registration

PAYE and UIF contributions are paid to SARS by the employer after they have been deducted from the employees` salaries.

What is UIF?
UIF (Unemployment Insurance Fund) which is managed by the department of Labour. It is intended to give short-term relief to workers who become unemployed or who are unable to work because of maternity, child adoption or illness. It also provides relief to the defendants of a deceased contributor.

The contributions for this fund is collected by SARS but managed by the department of Labour.

Why do I need to register for UIF?
It is the employers responsibility to pay the UIF contributions over to SARS within 7 days after the end of the month. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend or SARS will automatically add a 10% penalty.

What documents and information do you need to register for UIF?
SARS requires the company name, registration number, income tax number and business description for both PAYE and UIF registrations. A letter from your company bank confirming your banking details is also required.

How is UIF calculated?
The total UIF contribution to SARS is 2% of the employee’s salary. However, this amount is shared equally between the employer and employee who each pay 1%. This means that only a 1% deduction will be seen on the employee’s payslip. There is a salary ceiling of R14872 pm which means that the maximum UIF contribution per month per employee is capped at R148.72