We Have Years Of Experience Guiding Employers Through The Process of Domestic UIF.
How Does Domestic UIF Work?
The below are the most frequently asked questions employers have regarding Domestic UIF. We also have a FAQ page with more questions and answers should you still be uncertain about anything.
WHO MUST REGISTER FOR UIF?
If you have an employee who works 24 hours or more in a month for you, you need to register him/her with the Department of Labour for UIF. This is compulsory and your employee unfortunately does not have a choice as to whether he/she would like to be registered as you – the employer – will be the one who will be penalised in the end.
WHO GETS THE UIF NUMBER?
The employer will be registered as an employer of a domestic employee and the employer will receive the UIF number and any employees they have will be placed under the employer’s UIF number for the time in which they work. When your employee leaves you, you terminate them from your profile. Employees do not each receive their own UIF number.
CAN MY EMPLOYEE CLAIM?
When an employee becomes unemployed due to retrenchment, dismissal or contract expired, or is unable to work due to illness, maternity or adoption leave, they will be able to claim from the fund. This is as long as the employer has been contributing to the fund. If the employer did not contribute, they will need to settle any arrears owed before the employee can claim any UIF. You also need to ensure that salary amounts have been declared for every month that your employee has worked for you. This is very important for calculating outstanding UIF and for your employee to be able to claim.
HOW DOES PENALTIES AND ARREARS WORK?
To avoid penalties you need to ensure that you register yourself and your employees as soon as they start working for you.
Please note that if you are in arrears, by law you cannot deduct any UIF owing from your employee. You the employer will be liable for both your employees and your UIF contributions for the arrear period as well as any penalty and interest owed. You can only deduct the 1% from your employee from the current month going forward should you not have been deducting as yet.
Arrears is calculated as follows: they will calculate the 2% UIF owed per month for the period owing, a 10% penalty fee will be charged on the UIF amount owed and there is also interest charged, which is calculated daily by the finance department of the UIF, as there are fluctuations.
HOW MUCH MUST I CONTRIBUTE?
The employer needs to contribute 1% of the employee’s salary amount per month from their own pocket and the employee also needs to contribute 1% of their salary amount per month and the 2% needs to be paid over to The Department of Labour every month by the employer. This must be done by the 7th of each month e.g. January UIF must be paid by the 7th February to avoid penalties and interest.
WHEN DID UIF START?
UIF for domestic employees started on 1 April 2003, so even if your employee started working for you before that you can only go as far back as 1 April 2003.
WHAT IS THE MINIMUM WAGE?
Minimum rates for the period 1 December 2018 to 30 November 2019
Minimum wages for domestic workers who work 27 ordinary hours per week or more.
- Hourly rate: R13.69
- Weekly rate: R616.03
- Monthly rate: R2669.24
Minimum wages for domestic workers who work 27 ordinary hours per week or less.
- Hourly rate: R16.03
- Weekly rate: R432.78
- Monthly rate: R1875.22
HOW DO I PAY UIF?
Payments to the Department of Labour can be made by:
- Direct deposit