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BIZEMPIRE
(South Africa)

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Helping you start and build your small business empire

Legislation - UIF

Every now and then it becomes necessary (although many will disagree with the necessity) for our Government to introduce new legislation that affects small businesses in South Africa. This page will feature these pieces of law and will discuss the practical implications, together with possible discussions from legal experts should the need arise. We also cover existing laws that could affect the small business owner - as a type of refresher course. We recommend that you subscribe to our newsletter so that you don't miss out on any of this free advice.

UIF.  

Essentially all staff who work more than 24 hours in a month need to be registered for UIF.  The forms for doing so can be found at www.labour.gov.za . Existing employees are reminded that they should regularly update their employee information with the UIF whenever there is staff turnover or salary increases.

Most employers are registered with SARS and will therefore be able to make their UIF contributions each month together with their PAYE payments on the EMP201 form before the 7th of the following month. Employers must deduct 1% of the employee's salary and then needs to also contribute an equivalent amount frm their own pocket. The result is a payment to the amount of 2% of the employee's salary. Note that the amount is calculated on the gross salary before deductions are made. If the salary exceeds R8836 per month, then you do not need to make any UIF payments on the amount that exceeds the R8836 i.e. it is capped at a contribution of R88.36 ( X2 ) per month for each employee. A reminder to all you business owners that if you are drawing a salary from your business, then you are also an employee.

The reason for these contributions is that should you ever become unemployed or require maternity leave, then you can receive a portion of your original salary to tide you over until you can return to work.

The subject matter dealt with on this site is of a general nature only. It is always advisable to consult a professional for your specific situation. All information provided on this site has been carefully chosen and is to the best of our knowledge correct and current. If however you find errors, broken links or disagree with facts provided, please contact us at webmaster1@bizempire.co.za so that we can make the correction and provide South African business owners with relevant and error free factual information. If you believe there is relevant content missing and you wish to add this value to the site, then you can contact us at the same address

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