How Does UIF Work for Employers in South Africa?
Quick Answer
How Does UIF Work for Employers in South Africa?
As an employer you register on uFiling, register every employee, deduct 1% UIF from each salary and add 1% yourself (on remuneration up to R17,712/month), declare and pay monthly, and submit a UI-19 whenever an employee leaves. That is the whole monthly cycle.
What this means in plain language
UIF money protects your employees when they are retrenched, on maternity leave or too ill to work. Your job is only to collect and pay it over – the fund, not you, pays the benefits.
Most employers pay UIF to SARS together with PAYE on the monthly EMP201. Employers below the PAYE threshold pay the UIF directly to the Unemployment Insurance Fund.
Who this applies to
- Every employer with staff on 24+ hours a month
- Bookkeepers running small-business payrolls
Step by step
- Register as an employer on uFiling and add your employees.
- Each month: deduct 1% UIF from the salary, add your 1% (try the UIF calculator).
- Pay with the EMP201 by the 7th (PAYE employers) or directly to the UIF by the 7th (others).
- Keep records: payslips must show the UIF deduction.
- On any termination, resignation or retrenchment: submit the UI-19 within the required period so the employee can claim.
Common mistakes to avoid
- Calculating 1% on the full salary of high earners – the ceiling caps contributions at R177.12 each.
- Skipping declarations in months where nothing changed – the cycle continues regardless.
- Ignoring the UI-19 – a former employee’s stalled claim comes back to your desk.
A South African example
A Kimberley guesthouse employs four staff at R9,000 each. Monthly UIF: R90 deducted per employee plus R90 per employee from the owner – R720 in total, declared on the EMP201 and paid by the 7th of the next month.
Related questions
- Do I Have to Register My Employee for UIF?
- UIF vs PAYE: What's the Difference?
- UIF and COIDA: The Complete Employer Compliance Guide for South Africa
Always verify this information with official South African government sources. Rules, fees and thresholds change. Check SARS, CIPC, the Department of Employment and Labour or gov.za before you act.
Frequently Asked Questions
How much must an employer pay for UIF each month?
One percent of each employee’s remuneration from the employer plus 1% deducted from the employee – 2% combined, calculated on remuneration up to R17,712 per month. Maximum R354.24 combined per employee.
Where do I pay UIF – SARS or the Department of Labour?
PAYE-registered employers pay UIF to SARS on the monthly EMP201. Employers not registered for PAYE pay the UIF contributions directly to the Unemployment Insurance Fund. Both are due by the 7th of the following month.
What is a UI-19 form?
The UI-19 is the form declaring an employee’s start, changes or end of service to the UIF. Without it a former employee cannot claim benefits, and the employer remains non-compliant.
Need UIF registrations or catch-up done for you? A dedicated UIF service can help.
Official sources
About BizAnswers: BizAnswers is a privately owned South African company – not a government department. Our guides are free to read and show you how to do things yourself through official channels. If you would rather have the paperwork handled for you, we assist individuals and businesses with filing their South African tax returns and staying compliant, which is a paid service, not a free government service. Contact us for help.
Last reviewed: September 2026 by the BizAnswers editorial team. How we write and check our guides.
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