UIF contributions – consequences for not paying to the fund. 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.

Nevertheless, the policy also provides care for people who are unable to work due to maternity leave, job loss, parental leave, adoption leave, illness and other factors.

Important links about UIF benefits

Not only is it against the law for workers and employers to fail to pay their quota to the unemployment insurance fund, but workers who deem relief when needed can become overburdened when living standards become tight over time.

It is always necessary to pay your contributions to the UIF in some other form to avoid any consequences quickly ahead.


In our previous posts, we have highlighted several factors related to UIF, some of which you can find links in this post to keep up to date with all the information regarding the Unemployment Insurance Fund.

In this post we take a detailed look at the consequences that someone can face if he/she does not pay his/her contribution to the fund.

Frequently asked questions about UIF are also addressed in the post.

What are the consequences of not paying UIF premiums

According to the deputy director of compliance at the UIF, failure to pay UIF contributions by employers to the employees could result in fines and interest being imposed on the employer.

If employers are found to have non-compliance, they will also receive a notice of commitment or an order of compliance.

After the employer has received the aforementioned notices, the employer is given a 14-day ultimatum, after which the case will be taken to the labor tribunal for prosecution, provided that the employer refuses to comply.

Below are some frequently asked questions (FAQs) about the consequences of not paying UIF contributions

Is it mandatory to pay UIF contributions?

Yes, it is a legal requirement to register and pay UIF premiums for your employees only if you employ people who work more than 24 hours per month.

Does UIF money expire?

There is no expiration date for your UIF contributions. UIF can be claimed after 12 months, provided you have your full credit days. The credit days are linked to 4 days of which you receive one of the 4 days, except for 12 months.

Can an employee refuse to pay UIF?

No, the Unemployment Fund Act not only gives the employer the share to pay his contribution, but the employee must also pay.

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.

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.

Other important links about UIF benefits

With this message we have informed you about the consequences that an employer or employee can incur if he/she refuses to pay his/her contribution to the UIF.