The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers, but not to –
- workers working less than 24 hours a month for an employer;
- public servants;
- foreigners working on contract;
- workers who get a monthly State (old age) pension; or
- workers who only earn commission.
Registration and Declarations
- Employers must register themselves and their worker/s as soon as they employ someone.
- Employers must also inform the UIF of changes (e.g. new workers appointed or changes in salary) before the 7th of every month.
- Based on Legislation in Section 56, of the Unemployment Insurance Act, Employers must deduct 1% of their workers’ pay for UIF.
- Based on Legislation in Section 7, of the Unemployment Insurance Contributions Act, Employers must pay the 1% they deducted from workers, together with 1% from themselves to the UIF or SARS before the 7th of every month.
- Based on Legislation in Section 6, Section 8, Section 9, of the Unemployment Insurance Contributions Act
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