The Unemployment Insurance Fund (UIF) provides short-term financial relief to workers who become unemployed, ill, or take maternity leave. Employers must register with UIF and make monthly contributions. Funders require proof of UIF compliance as part of their assessment of your business's legal standing.
What is UIF?
UIF (Unemployment Insurance Fund) was established under the Unemployment Insurance Act No. 63 of 2001. It provides benefits to workers for:
- Unemployment: Up to 12 months of benefits after job loss
- Maternity: Up to 4 months for qualifying mothers
- Illness: Benefits for workers unable to work due to illness
- Adoption: Leave benefits for adopting parents
- Death: Dependants' benefits
Why Funders Require It
Funders request UIF compliance because:
- Legal requirement: Non-compliance is a criminal offence
- Employee protection: Shows you care for worker welfare
- SARS alignment: UIF non-compliance often indicates PAYE issues
- Government contracts: Essential for public sector work
Who Must Register
You must register for UIF and contribute if you employ anyone who works more than 24 hours per month.
Exemptions from UIF
The following workers are NOT covered by UIF:
- Workers employed for less than 24 hours per month
- Learners (e.g., apprentices in terms of Skills Development Act)
- Public servants (covered under different schemes)
- Foreigners on work permits working for foreign employers
- Workers who receive only commission (no basic salary)
How to Register for UIF
uFiling Online Registration (Recommended)
- Go to uFiling Portal
Visit ufiling.labour.gov.za
- Create an Account or Log In
If you're already registered for COIDA, use the same account. Otherwise, register with your company details.
- Add UIF Registration
Navigate to "Register for UIF" and complete Form UI-8 (Employer Registration).
- Provide Required Information
- Company registration number (CIPC)
- Trading name and physical address
- Contact details
- Banking details
- Number of employees
- Estimated monthly payroll
- Receive UIF Reference Number
You'll receive a UIF employer reference number (often the same as your PAYE reference number with different suffix).
Manual Registration
Visit your nearest Labour Centre with:
- Completed Form UI-8
- CIPC registration documents
- Proof of banking details
- Director/member ID copies
UIF Contributions
Contribution Rates
Standard Rate: 2% of Remuneration
- Employer: 1% of employee's remuneration
- Employee: 1% deducted from employee's salary
- Total: 2% paid to UIF by employer
Ceiling (2024/25)
Maximum monthly earnings for UIF calculation: R17,712
Maximum contribution per employee: R177.12 (employer) + R177.12 (employee) = R354.24 per month
Employee deduction: R150 (1%)
Employer contribution: R150 (1%)
Total paid to UIF: R300
Making UIF Payments
UIF contributions must be paid by the 7th of each monthfor the previous month's earnings.
Payment Methods
- EFT: Pay to UIF bank account with your reference number
- uFiling: Online payment through the portal
- Labour Centre: Cash or card payment
- SARS eFiling: If paying with PAYE (EMP201)
Monthly Declarations
Employers must submit monthly declarations via uFiling, including:
- UI-19: Monthly declaration of employees and earnings
- Employee details (ID numbers, names)
- Monthly remuneration for each employee
- Any employee terminations or new hires
UIF Compliance Certificate
To obtain a UIF compliance certificate (often requested by funders):
- Ensure All Declarations Are Submitted
All monthly UI-19 declarations must be up to date.
- Ensure All Payments Are Made
No outstanding contributions or penalties.
- Request via uFiling
Log in to uFiling and request a compliance letter/certificate.
- Alternative: Email Request
Email uifcompliance@labour.gov.za with:
- UIF reference number
- Company name and registration
- Contact details
Common Issues and Solutions
| Issue | Solution |
|---|---|
| Can't log in to uFiling | Reset password or contact uFiling support (0800 843 4543) |
| Outstanding declarations | Submit all outstanding UI-19 forms (late submissions accepted) |
| Payment not reflecting | Allow 3-5 working days; check reference number was correct |
| Employee ID not accepted | Verify ID number; foreign nationals use passport numbers |
| Company name mismatch | Update registration if company name changed at CIPC |
| Already registered at SARS | Your SARS PAYE registration includes UIF - verify status |
Penalties for Non-Compliance
- Late payment: 10% penalty on outstanding amount
- Late declarations: Fines up to R50,000
- Non-registration: Criminal offence, possible imprisonment
- Fraudulent declarations: Criminal prosecution
Tips for Success
- Automate: Use payroll software that handles UIF declarations
- Pay with PAYE: Submit EMP201 to SARS covering PAYE, UIF, and SDL together
- Keep employee records: Maintain accurate records of all employees
- Reconcile monthly: Check that declarations match payroll
- Issue UI-19 to employees: Employees need this to claim UIF benefits
Next Steps
Need Help With UIF and Labour Compliance?
Our network of payroll specialists and HR consultants can help you get UIF compliant and prepare your labour documentation for funding applications.
- Business plan development
- Financial projections
- Funding application support
- Pitch deck preparation