UIF requirements work on two sides. Employers must register and contribute for employees who work 24 or more hours a month, and workers who lose income may claim short-term benefits. The contribution is 2% of remuneration in total (1% from the employee and 1% from the employer), on earnings up to R17 712 a month.
The UIF was established under section 4 of the Unemployment Insurance Act 63 of 2001. Contributions are collected under the Unemployment Insurance Contributions Act 4 of 2002, which SARS administers. The figures below come from the SARS page on the UIF and the Department of Employment and Labour’s Basic Guide to the UIF.
Business Requirements at a Glance
- Who must register: every employer with employees working 24 or more hours a month, including a household that employs a domestic worker
- Hours rule: an employee who works less than 24 hours a month for an employer is excluded from contributing
- Rate: 1% from the employee plus 1% from the employer, a total of 2%
- Earnings ceiling: contributions do not apply to remuneration above R17 712 a month (R212 544 a year), in force since 1 June 2021
- Payment date: on or before the 7th day of every month
- Declarations: employers must declare changes such as new appointments, remuneration changes and terminations
- Claims: workers claim unemployment, illness, maternity, adoption and dependants’ benefits through the Department
Registration and Legal Requirements
Employers must register with the UIF as soon as they start acting as an employer. This covers anyone paying remuneration in cash or in kind, and it includes households. The sources do not set a number of days, so register straight away.
The 24-hour rule. The answer to the common question “an individual must be employed for at least how many hours a month to be registered for UIF” is 24 hours. Employees working less than 24 hours a month for an employer are excluded from contributing. The Department’s guide lists some other excluded groups, but the 2016 amendment extended cover to learners and civil servants, so confirm the position for those workers with the Department.
UIF and PAYE. An employer registered with SARS for Employees’ Tax must also register to pay UIF contributions. Employers not registered for PAYE register at the UI Commissioner’s office. Employers who pay through SARS must also register with the UIF and declare their employees.
Employee deductions belong to the Fund. The employee’s 1% is deducted from remuneration and paid over together with the employer’s 1%.
Documents and Ownership Information Required
Employers need the following to register, declare and pay:
- The employer’s UIF registration and, where applicable, its SARS registration
- Each employee’s identity details, start date and remuneration for the monthly declaration
- Details of changes: new appointments, remuneration changes, terminations, illness, maternity or adoption leave, and deaths
Payment can only be made once the employer is registered and has submitted a declaration. For a worker’s claim, the guide lists a 13-digit bar-coded RSA ID or valid passport, banking details on form UI 2.8, the employer’s declaration (UI-19) and work-seeker registration. See our UIF claim requirements page for claim documents.
Tax, Licence and Compliance Requirements
The ceiling and the maximum deduction. Because contributions stop at R17 712 a month, 1% of that ceiling is about R177.12 from the employee and the same from the employer. SARS states the ceiling; the R177.12 is our calculation. SARS still shows R17 712 as the current figure and gives no separate 2024 or 2025 threshold, so those searches lead to the same number.
Who collects what. SARS collects contributions, while the Department of Employment and Labour pays benefits. UIF Online, not uFiling, now handles benefit claims. Employers are encouraged to declare electronically through payroll systems or uFiling, and manual declarations are allowed.
Workers can claim several benefits: unemployment, illness, maternity, adoption, and dependants’ benefits where a contributor dies. Unemployment benefits are payable up to 365 days in any four-year period, subject to credits, according to the BizPortal UIF FAQ. The Fund pays a percentage of earnings, not full salary.
Resignation generally does not qualify. You cannot claim unemployment benefits if you resigned, were suspended or absconded, unless the CCMA treats the resignation as constructive dismissal. Dismissal, retrenchment and contract expiry qualify, and you must register as a work seeker.
Process, Deadlines and Ongoing Obligations
- Register with the UIF as soon as you employ someone who works 24 or more hours a month
- Declare employees and any changes, then pay 2% of remuneration by the 7th of each month
- Workers: check that your employer has declared you and keep payslips showing the deduction
- Claim as soon as you become unemployed. Official sources differ on the cut-off: the Department’s guide and gov.za say within six months of termination, while the BizPortal FAQ says twelve months. Confirm the period with the Department before relying on either
- Lodge claims on UIF Online or in person at a Department of Employment and Labour labour centre
- Do not claim benefits while employed. The guide says “work and draw” is a crime
The UIF call centre number shown on the official UIF Online site is 0800 030 007 (07:30 to 16:00, Monday to Friday). The Department’s guide says the forms are available from any labour centre or on its website, and it states no fee for claiming.
Frequently Asked Questions
What is UIF in South Africa?
A fund set up under section 4 of the Unemployment Insurance Act 63 of 2001 to give short-term relief to workers who become unemployed, ill, or on maternity or adoption leave, and to dependants of deceased contributors.
How does UIF work?
Employer and employee each pay 1% of remuneration, up to the R17 712 monthly ceiling. The Fund then pays short-term benefits for unemployment, illness, maternity, adoption and dependants of deceased contributors.
An individual must be employed for at least how many hours a month to be registered for UIF?
24 hours a month. Employees working less than 24 hours a month for an employer are excluded from contributing.
What is the UIF limit or threshold for 2024 and 2025?
The earnings ceiling is R17 712 a month (R212 544 a year), effective 1 June 2021. The SARS page shows no change for 2024 or 2025. Confirm with SARS if you need a later figure.
How much is the UIF deduction?
1% of remuneration is deducted from the employee and 1% is added by the employer, a total of 2%, on earnings up to R17 712 a month.
Do I have to register for a domestic worker?
Yes, if the worker works 24 or more hours a month for you. Every employer paying remuneration, including a household, must register with the UIF.
Which Acts govern UIF?
The Unemployment Insurance Act 63 of 2001 covers benefits. The Unemployment Insurance Contributions Act 4 of 2002 covers contributions and is administered by SARS.
Can I claim if I resigned?
Generally not. Resignation does not qualify unless the CCMA treats it as constructive dismissal. Dismissal, retrenchment and contract expiry do qualify.
Do I need an agent to claim?
No. The forms are available from any labour centre or the Department’s website, and the sources we read state no fee for claiming.
Confirm current rules with the Department of Employment and Labour (UIF) and SARS. See business and compliance requirements and company registration requirements.