UIF gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption leave, or illness. It also provides relief to the dependants of a deceased contributor.

Employers are required by law to register with the UIF and contribute towards the fund if they employ people for more than 24 hours per month. If employers are not registered with SARS for employees’ tax, then they should register at the UI Commissioner’s office for purposes of paying UIF contributions.

The amount of the contribution due by an employee, must be 1% of the remuneration paid by the employer to the employee. The employer must pay a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer) within the prescribed period. It must be paid within 7 days after the end of the month during which the amount was deducted. If the last day for payment falls on a public holiday or weekend, the payment must be made on the last business day before the public holiday or weekend. There is a maximum earnings ceiling of R14 872 per month or R178 464 annually. For employees who earn more than this amount, the contribution is calculated using the maximum earnings ceiling amount. Therefore, the maximum contribution which can be deducted, for employees who earn more than R14 872 per month, is R148.72 per month.

UIF applies to all employers and workers, excluding:

• workers working less than 24 hours a month for an employer;

• learners;

• public servants;

• foreigners working on contract to be repatriated at the end of their contract;

• workers who only earn commission.