Do casual employees pay UIF contributions? Searches show that many employers refuse to register their employees with the Unemployment Fund (UIF). As for temporary workers, employers are partially ignoring the attempt to register them for UIF.
Well, on a more serious note, the labor laws frown on such acts carried out by some employers in the country. The law further specifies that any employer who refuses to register its employees could face a fine if caught.
In fact, the Unemployment Fund serves as security for applicants and benefit recipients when they go on maternity leave or are unemployed.
Contributing to UIF is so essential that no one knows when a man will fall as life is full of uncertainties.
The South African Labor Department initiated these sharp policies to reduce unemployment and the high dependency rate in the country.
In this article, we will inform you about who should pay the UIF contributions and other frequently asked questions about UIF.
Do casual employees pay UIF contributions?
Yes, temporary workers pay UIF contributions. As the law says, any employee who works more than 24 hours per month is entitled to receive payment of his/her UIF contribution.
Frequently Asked Questions (FAQs)
Does UIF pay if your contract is terminated?
It’s a big yes, UIF will pay if your contract is terminated or cancelled. This is because if you had paid your contributions to the fund while you were working, UIF will only pay you when your credit days are due.
That is working more than 24 hours a month for 12 months.
Has the South African government increased UIF contributions?
Yes, the government has increased the Unemployment Fund through the Minister of Finance. The monthly maximum allowance has been increased from R14.87 to R17,712.
How often does UIF pay out?
After eight weeks of registration you should start earning something. Your money will then be paid out every four weeks.
How to register for UIF Online?
Now let’s go through the UIF registration processes online without visiting any nearby employment office for manual assistance.
- Select “Registration/Register” after you see the menu on the left side uArchive screen.
- Register as a commercial employer or domestic employer. Complete the rest of the form following the prompts.
- After these steps, you will receive a UIF registration confirmation once registration is complete.
From here you are ready to go without having to walk a step to the employment office.
Does UIF pay a lump sum?
Yes, this is calculated depending on the issue and the number of years you have contributed to the fund.
It is usually paid to beneficiaries of a UIF contributor upon his/her death.
Will all payments from the UIF be tax-free?
Yes, all distributions paid by the fund to its contributors are tax-free.
Important links on UIF
In this article, we could categorically let you know that contingent workers are eligible to contribute to UIF and other UIF FAQs.