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 Act and Contributions Act, it is administered by the Department of Employment and Labour.

Employers are legally required to register for UIF and make monthly contributions for eligible employees. UIF acts as a social safety net, and non-compliance can result in penalties, interest on late payments, and difficulties for employees claiming benefits.

Employers and employees must contribute if the employee works more than 24 hours per month, is not covered by a similar scheme (e.g., GEPF for government employees), and is not an independent contractor.

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. Contributions are declared and paid monthly via uFiling or SARS eFiling.

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.

COIDA (Compensation for Occupational Injuries and Diseases Act) is a law ensuring employees injured or ill due to work are compensated without suing their employer. It applies to private households, small businesses, and body corporates employing 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 for contracts or site access.

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.
3. Employee submits W.CL.1 form.
4. Submit medical reports (W.CL.4, W.CL.5, W.CL.6).
5. Include ID, payslip, COIDA registration, and payment proof.
6. Receive claim number.
7. Employer pays salary for first 3 months of absence, reclaimable.
8. Ensure a valid Letter of Good Standing. 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).
- Sick Leave: 6 weeks over 3 years, 1 day per 26 days in first 6 months.
- 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.

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, with basic services (electricity, water, sanitation). Deductions for accommodation (max 10% of wage) require voluntary agreement, good condition, and written consent.

Termination must follow BCEA and Sectoral Determination 7:
- 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 fixed-term contract end.
- 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: Written notice (1-4 weeks), disciplinary hearing, severance pay for retrenchment, and compliance with leave/UIF payments.

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.

Yes, it is compulsory to register domestic staff with UIF if they work more than 24 hours per month. This includes cleaners, gardeners, drivers, and nannies. Both employer and employee contribute 1% of the salary monthly.

Yes, 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 once-off registration fee (R395.31 per employee) includes UIF and COIDA registration, a compliant employment contract, payroll setup, and historical recapturing of employee data.

Yes, we track annual, sick, maternity, and family responsibility leave per BCEA standards, maintaining records of absences for compliance.

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 (R91,250 per annum for 2023/2024, subject to change). Monthly EMP201 filings are required.

Monthly payroll processing (R95.83 per payslip) includes calculating PAYE, UIF, and SDL (if applicable), generating compliant payslips, and submitting EMP201 returns to SARS via eFiling.

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, EFT, and other methods. Invoices are issued monthly or as per your service agreement.