UNEMPLOYMENT INSURANCE FUND

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The Unemployment Insurance Fund (the “UIF”) is a fund established in terms of section 4 of the Unemployment Insurance Act, Act no. 63 of 2001 with a mandate to collect contributions and pay unemployment benefits to qualifying beneficiaries.

In terms of section 56 of the Unemployment Insurance Act employers have the following duties towards the UIF:

  • Section 56 (1) of the UIF Act requires employers to register with the UIF as soon as they commence activities as employers.
  • Section 56 (3) requires employers to, before the 7th of each month, inform the Commissioner of any change during the previous month in any information furnished in terms of section 56 (1).
  • Section 7 of the Unemployment Insurance Contributions Act requires the employer to deduct contributions from the employee and, together with his contribution, pay that over to the SARS Commissioner or the UIF Commissioner before the seventh of every month.

The above information is used by the UIF Commissioner to keep a database as required by section 57 of the UI Act.  This information is in turn used to calculate the amount of and pay out contributions to the beneficiaries when they come to claim for unemployment benefits.

Challenges identified by the UIF

The UIF has identifies a gap in terms of compliance to the UIF legislation by employers.  We have identified lack of information and assistance, amongst others, as contributing factors to this non-compliance.  There is also confusion amongst employers that if you are registered with SARS, paying contributions and submitting returns to SARS, then you do not have to register with UIF.

The UIF has therefor embarked on a project to assist employers to comply with our legislation.  Part of the strategy is to collaborate with organised bodies to act on behalf of their members or clients to assist them to comply.

  1. Request to employers

To enable us to assist you in this regard, you are hereby requested to submit the information to the following e-mail address: enquiries.compliance@labour.gov.za

The information must include the following:

  • UIF reference number of the employer
  • Name of the employer/business
  • Employer’s list of current employees, i.e. surname and initials, and ID numbers.
  1. Register on U-filing

Employers are also encourage to register on U-filing to submit their declarations and/or pay their contributions electronically.  To register on U-filing please visit www.ufiling.co.za or alternatively contact the following officials: Ms Maschache Molefe at maschache.molefe@labour.gov.za and Mr Kgomotso Sono at kgomotso.sono@labour.gov.za

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE). 

 

 

 

 

 

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