Understanding UIF
4 min read — Updated February 2026
What Is UIF?
The Unemployment Insurance Fund (UIF) provides short-term financial relief to workers who lose their jobs, become ill, or go on maternity leave. Both the employer and employee contribute 1% of the employee's gross salary each month (2% total).
Who Must Register?
All employers in South Africa must register for UIF if their employees work more than 24 hours per month. This includes domestic workers, gardeners, and any household employees.
Failing to register for UIF is a criminal offence. You can be fined and even imprisoned.
How Contributions Work
Each month, 1% is deducted from the employee's gross pay, and the employer contributes a matching 1%. The total 2% must be paid to the UIF by the 7th of the following month.
- Employee contributes: 1% of gross pay
- Employer contributes: 1% of gross pay (not deducted from employee)
- Maximum monthly earnings for UIF: R17,712 (contributions are capped at this amount)
- UIF applies if the employee works more than 24 hours per month
SA Wages Pro automatically calculates the 1% UIF deduction on every payslip and tracks whether UIF applies based on the employee's hours.
How to Register for UIF
You can register at your nearest Department of Labour office or online through uFiling (www.ufiling.co.za). You'll need your ID, the employee's ID, and details about the employment.
SA Wages Pro includes a UIF registration guide on the Compliance page with step-by-step instructions.
What Does UIF Cover?
When a registered employee loses their job, they can claim from UIF:
- Unemployment benefits — up to 238 days of payments
- Illness benefits — when unable to work due to illness
- Maternity benefits — up to 4 months for pregnant employees
- Dependant benefits — if the employee passes away
Was this article helpful?