Your question: Who is exempt from paying UIF in South Africa?

Does everyone pay UIF?

Employers must pay unemployment insurance contributions of 2% of the value of each worker’s pay per month. The employer and the worker each contribute 1%. Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African Revenue Services (SARS). workers who only earn commission.

Who is excluded from UIF?

employees that work less than 24 hours a month; certain members of State; employees that do not comply with the law; or. employees suspended from claiming benefits from the UIF, for example, when making false statements, committing fraud, not informing the UIF that s/he was re-employed and so on.

Is it compulsory to pay UIF?

1. Unless a domestic worker works less than 24 hours a month, the employer is legally obliged to register the worker for UIF and make monthly payments to UIF, or yearly, by arrangement. These payments are a 1% contribution from the employer plus a 1% deduction from the employee’s wages.

Is UIF exempt?

Exemption from UIF

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UIF contributions must be made for all employees unless they are expressly excluded by the relevant legislation.

How many months do you get paid UIF?

UIF can be claimed for 12 months, provided that you have full credit days. Credits accrue as follows: for every four days that you work as a contributor, you receive one day’s credit, subject to a maximum of 12 months. To qualify for the full credit days you must have worked as a contributor for more than four years.

Can I claim UIF after 5 years?

If you have been making UIF payments for four years or more, you can claim up to 238 days. If you have been contributing for less than four years, you can only claim one day out of every six days that you worked while you were contributing to the fund.

Is UIF paid to SARS?

Excess amounts shouldn’t be included as remuneration or as a leviable amount for the purposes of UIF contributions. The amounts deducted or withheld must be paid by the employer to SARS on a monthly basis, by completing the Monthly Employer Declaration (EMP201).

What is the penalty for not paying UIF?

But as non-payment is an offence, the UIF will levy a 10% penalty on these back contributions (which you can work out yourself), and their finance department will also calculate a daily amount of interest owing (which will vary as there are fluctuations).

How do I apply for UIF online lockdown?

Claim UIF during lockdown in 12 easy steps

  1. Click here to visit the UIF online portal.
  2. You will now be on the home page, where you will see a register and login button.
  3. Click on the register button.
  4. Complete all the fields on the screen below.
  5. After all fields have been completed, press proceed to create a profile.
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What is the UIF limit for 2020?

UIF limit increase

It is proposed that the UIF contribution ceiling will be increased to R17,711.58 per month from R14,872 per month with effect from March 1. The maximum monthly contribution will be increased from R148. 72 for both the employee and employer to R177.

At what age do you stop paying UIF?

Unfortunately, UIF is an unemployment insurance benefit that only pays out when people lose their job involuntarily (retrenchment, dismissal, illness, pregnancy etc). It does not pay out when you retire. You have to claim your retirement fund at that point.

Can I claim UIF online?

How do I claim UIF? If you are unemployed or have had your hours reduced, you can claim directly from the UIF. The UIF offices are closed, but you can register online at

What is the maximum UIF payout per month?

UIF benefits will be paid to all qualifying employees, ranging from the minimum amount of R3,500, to the maximum amount of R6,638.40 per month.

Is UIF calculated on basic salary?

AfriClock calculates UIF on Gross Pay, LESS deductions for short time, PLUS payments for overtime, and does NOT calculate UIF on commissions paid.

What happens to my UIF contributions if I resign?

When your employer terminates your service, you can apply to the Unemployment Insurance Fund (UIF) for benefits. The benefits are only available to you if you have been contributing to the UIF while you worked. You cannot claim if you have resigned, been suspended or absconded from work.

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Across the Sahara