The Unemployment Insurance Fund (UIF) is a government-managed fund that provides short-term financial relief to employees who become unemployed or are unable to work due to specific circumstances, such as maternity or illness. Governed by the Unemployment Insurance Contributions Act, it is administered by the Department of Employment and Labour.

UIF acts as a social safety net, and non-compliance can result in penalties, interest on late or non-payment, and even jail time. Employers must register employees who work 24 hours or more per month with the UIF.

Employers and employees must contribute if the employee works more than 24 hours per month.

The total UIF contribution is 2% of the employee’s gross salary: 1% paid by the employer and 1% deducted from the employee’s salary up to a maximum of R177.12 per contributor.

Each month, employers must submit a UIF declaration detailing employee earnings and employment status, pay contributions for each eligible employee, and keep employee records updated to ensure successful benefit claims.

Employees can claim UIF for unemployment (e.g., retrenchment, dismissal), maternity leave, adoption leave (child under two), illness leave (with medical proof), or dependents’ benefits (upon employee’s death), provided contributions and declarations are up to date.

Failure to register or pay UIF contributions can prevent employees from claiming benefits, result in penalties and interest for the employer, trigger audits or legal action by the Department of Labour, and harm the employer’s reputation.

The Compensation for Occupational Injuries and Diseases Act (COIDA) is a South African law that provides a no-fault compensation system for employees who suffer work-related injuries or illnesses. It ensures fair compensation without the need to sue employers and applies to all employers, including private households, small businesses, and body corporates with staff.

Employees receive medical care, disability benefits, wage compensation, or death benefits. Employers gain legal protection against claims, avoid direct liability, ensure compliance, and can obtain a Letter of Good Standing for contracts or site access.

Employers must submit an annual ROE, declaring total employee earnings, and pay an assessment fee based on work nature and salaries. This enables issuance of a Letter of Good Standing, confirming COIDA compliance.

A Letter of Good Standing, issued by the Compensation Fund after ROE submission and payment, proves COIDA compliance. It’s valid for one year and is required for private households, businesses and body corporates.

Non-compliance with COIDA leaves employees uncompensated for injuries, making employers personally liable. It can also lead to penalties, interest, and reputational damage. Compliance protects both employees and employers legally.

To lodge an IOD claim:
1. Provide immediate medical attention and cover initial costs (reclaimable).
2. Submit W.CL.2 form within 7 days online at https://cfonline.labour.gov.za.
3. Include ID, payslip, COIDA registration, Ensure a valid Letter of Good Standing or latest proof of payment is maintained.
4. Employee obtains and must be submitted with the WCL2 form W.CL.1 form. 5. Receive claim number.

6. Submit medical reports (W.CL.4, W.CL.5, W.CL.6).
7. Employer pays salary for first 3 months of absence, reclaimable.
8. Claims must be filed within 7 days to avoid rejection.

The BCEA sets minimum standards:
Annual Leave:
21 consecutive days (15 working days for a 5-day week) worker.
Sick Leave:
Employees are entitled to the number of days they would normally work in a six-week period, spread over a 36-month cycle. This means, for example, an employee working a five-day week has 30 days of paid sick leave over three years. During the 1st 6 months of employment, sick leave is calculated at 1 day per every 26 days worked, whereafter the full balance becomes available.
Family Responsibility Leave:
3 days per year after 4 months (for employees working 4+ days/week).
Overtime:
Voluntary, max 10 hours/week, paid at 1.5x normal wage.
Public Holidays:
Double pay if worked, normal pay if not.
Rest Periods:
12-hour daily rest, 36-hour weekly rest, 1-hour meal break after 5 hours worked.

A private household employee (domestic worker) includes housekeepers, cleaners, gardeners, nannies, elderly care assistants, cooks, drivers, or live-in caretakers who work more than 24 hours per month in a private home.

Under Sectoral Determination 7:
Minimum Wage:
R28.79/hour as of 1 March 2025.
Working Hours:
Max 45 hours/week (9 hours/day for 5-day week, 8 hours/day for 6+ days). Overtime (max 15 hours/week) at 1.5x wage, Sundays/public holidays at 2x wage.
Leave:
15 working days annual leave, 6 weeks sick leave over 3 years, 3 days family responsibility leave, 4 months unpaid maternity leave (UIF claimable).
Contract & Termination:
Written contract recommended, notice periods (1-4 weeks), Certificate of Service required.
Registrations:
UIF and COIDA mandatory.

Live-in domestic workers have all standard rights, plus: accommodation must be safe, clean, in good condition, with basic services (electricity, water, sanitation, lockable, waterproof with at least one window).
Deductions for accommodation (max 10% of wage) require voluntary agreement and written consent.
Meals and accommodation may also be provided by the employer as a fringe benefit, the amount of which is considered taxable in the hands of the employee. This does not contribute to their cash salary but does form part of the salary declared to UIF and on which UIF contributions are payable.

Termination must follow BCEA and Labour Relations Act:
Mutual Agreement: Resignation or agreed settlement.
Dismissal: For misconduct (after investigation/hearing), incapacity (poor performance/illness with warnings), or retrenchment (consultation required).
Retirement/Contract Expiry: At agreed retirement age or expiry date of fixed term contract.
Employee’s Death: Contract terminates naturally.
Constructive Dismissal: Resignation due to unfair employer actions.
Non-Compliance: Non-payment or failure to register UIF/COIDA may lead to termination.
Procedures:

To backdate payslips and UIF contributions:
1. Provide accurate, timely employee information.
2. Disclose the correct employment start date.
3. Request the Historical Salary Information Sheet from admin@payroll-sa.co.za.
4. Submit the completed sheet promptly.
5. Payroll-SA sets up the payroll system.
6. UIF registration is backdated to the start date.
7. Make UIF payments for backdated periods and submit proof to Payroll-SA.

Only applicable to Private Household Employers. For Company/Body Corporates backdating, please contact us for a formal quotation

Yes, this law came into effect on 1 April 2003. It is now compulsory to register domestic staff for UIF if they work more than 24 hours per month. This includes:

• Cleaners
• Gardeners
• Nannies or Au Pairs
• Drivers
• Domestic caregivers

Both the employer and employee are required to contribute 1% of the employee’s gross monthly salary to the Unemployment Insurance Fund (UIF), bringing the total monthly contribution to 2%. Failure to register and contribute to UIF may result in penalties and interest, and it affects the employee’s ability to claim unemployment, maternity, illness, or dependants benefits.

Yes, this law came into effect on the 19th of November 2020. All employers of domestic staff must register with COIDA to cover work-related injuries or illnesses. Annual returns must be submitted to the Compensation Fund.

The Initiation Fee (R491-14 per employee) includes UIF and COIDA registration, a compliant employment contract, payroll setup, and historical recapturing of employee data and first month's payslip.

Yes, we track annual, sick, maternity, and family responsibility leave per BCEA standards, maintaining records of absences for compliance.
To manage this effectively, employers are required to submit absenteeism information to Payroll-SA by the 25th of the month in which the absence occurred. This deadline is crucial for effective management of absenteeism and relates to tracking, reporting and payment processing for absences.

Yes, we offer termination support, including UI-19 forms and salary schedules (R250.00 per employee), termination agreements (R250.00), or a comprehensive termination pack (R1,000.00 per employee) with all necessary documentation.

Yes, small businesses must register for PAYE with SARS if any employee earns above the tax threshold (R95,748.00 per annum for 2025/2026, subject to change). Monthly EMP201 filings are required.

Monthly payroll processing (R95.83 per payslip) includes calculating PAYE, UIF, and SDL (if applicable), processing of fixed and variable income and deductions, generating compliant payslips. EMP201 @ R970 Quote apart

Yes, we handle bi-annual EMP501 reconciliations (R1,386.00 per submission) or monthly instalments (R231.00/month), including preparation, submission, and generation of IRP5/IT3(a) certificates.

Yes, we update backdated UIF declarations for R50.00 per employee per month in arrears, ensuring compliance with Department of Labour requirements.

All payments are securely processed through Payfast, supporting credit/debit cards. Invoices are issued monthly or as per your service agreement.