UIF (Unemployment Insurance Fund)

“What is UIF?”

UIF stands for the Unemployment Insurance Fund.

It’s a government fund that provides short-term financial support to employees who:

  • Lose their job
  • Go on maternity or adoption leave
  • Are unable to work due to illness or injury
  • Need support when a contributing worker passes away (benefits for dependants)

As an employer, it’s your responsibility to register for UIF and make monthly contributions to the fund through SARS.

“How much must I pay for UIF?”

UIF contributions are shared between the employer and the employee:

  • You deduct 1% of the employee’s salary
  • The company adds another 1%
  • So, a combined 2% of the employee’s salary is paid to SARS every month

“Who needs to be registered for UIF?”

You MUST register for UIF if you employ someone for more than 24 hours per month

This includes full-time, part-time, and fixed-term employees.

So, for example:

Let’s say your employee earns R10,000 per month:

  • You deduct R100 (1%) from their salary
  • You contribute another R100 (1%) as the employer
  • You pay R200 total to SARS for UIF

This ensures your employee is protected if something unexpected happens.

“What happens if I don’t pay UIF?”

If you don’t register or pay UIF:

  • Your employees won’t be able to claim benefits if they need them
  • You may face penalties, interest, or legal action from SARS or the Department of Labour
  • Your company may be marked as non-compliant, affecting tenders or funding opportunities

“How do I claim UIF?”

If an employee loses their job or qualifies for another benefit, they can claim from the UIF through the Department of Employment and Labour (not SARS).

They’ll need their…

  • ID
  • Banking details
  • Proof of employment
  • Their UIF number (from the employer)
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