HUMAN RESOURCES 101 (PTY) LTD

Unemployment Insurance Fund (UIF)

Background:

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;
  • learners;
  • public servants;
  • foreigners working on contract;
  • workers who get a monthly State (old age) pension; or
  • workers who only earn commission.

         

Domestic employers and their workers are included under the Act since 1 April 2003.


Who Must Register with UIF?

All employers must register directly with the UIF; unless they –

  • are required to register as employers under the Income Tax Act; or
  • pay the skills development levy under the Skills Development Act.

Based on Legislation in Section 10, of the Unemployment Insurance Contributions Act


Who Must Register with SARS?

All employers who are required to register their workers with SARS for the payment of PAYE (Pay As You Earn) and/or SDL (Skills Development Levy) must also register with SARS for their UIF. Based on Legislation in Section 10, of the Unemployment Insurance Contributions Act

 

What are the benefits of UIF:

  • Benefits paid at a rate of 60 – 38% of last salary
  • Maximum benefit period is 34 weeks and is based on earnings ceiling
  • Covers over 7.6 million workers and 1.4 million employers

 

For an organisation to receive their UI-56 Certificate of Compliance, the latest Tax Clearance Certificate is required.  (Or a Tax Status Pin from SARS)

 

Penalties for non-compliance:

If any contributions are unpaid after the last day for payment thereof a penalty of 10% of the unpaid amount is payable in addition to the interest accrued.

 

HR101 can assist organisations to register their company for UIF and obtain a Certificate of Compliance.

 

THANK YOU FOR YOUR TIME AND THE OPPORTUNITY TO BE OF SERVICE TO YOU AND YOUR ORGANISATION.