By the 7th of every month employers must declare their employees regardless of whether there were changes or not. The Minister of Labour will issue a regulation on special dispensation applicable to domestic employers and small businesses or enterprises regarding the submission of information. The Act prohibits agency or person purporting to be acting on behalf of the applicant to charge any fee against the applicant.

1. Unemployment Insurance Fund
1

2. Purpose of UI Act
• Establish an unemployment insurance
fund to which employers and
employees contribute and from which
employees who become unemployed
or their beneficiaries are entitled to
benefits and in so doing alleviate the
harmful economic and social effects of
unemployment
2

3. Mission
• Through multiple channels, we will
deliver both financial and social relief,
to the right person, at the right time,
every time
3

4. Vision
• A caring, accessible and customer
centric UIF that contributes towards
poverty alleviation
4

5. Values
• Transparency
• Mutual respect
• Client-centered services
• Integrity
• Accountability
• Team work
• Caring for our people
5

6. Unemployment
Insurance Act No 63 of
2001 (as amended)
• UIF Commissioner
administers the Act
• Register as Employer
• Declare employees
• Payment of UIF
Contributions
Unemployment
Insurance
Contributions Act No 4
of 2002
• South African
Revenue Service
(SARS) Commissioner
administers the Act
• Collection and
Payment of UIF
Contributions
6

7. Employer
Registers with the
UIF
Employer Deducts
1% UIF contributions
from Employee
Employer adds 1%
UIF contributions
Employer pays 2%
to SARS/UIF
7th of the month
Employer Declares
monthly – UI-19/E-
Dec/Ufiling
7th of the month
Ceiling
R14 872 /
17 712
7

8. Ways / Means of declaring
• E-dec (send payroll file direct to UIF)
• Ufiling (Online system)
• UI-19 (Manual process)
8

9. 08/12/2020 UIF Benefits /9
UIF Benefit Types
Ordinary
Unemployment
Illness
Adoption
Dependants/Death
Maternity
UIF
Benefits

10. AMENDMENTS
OLD VS NEW
UNEMPLOYMENT INSURANCE ACT 63 of
2001
UNEMPLOYMENT INSURANCE
AMENDMENT ACT 10 of 2016
SECTION 3
3 (1)
Benefit type: All Benefits
Exclusions
 Employees working less than 24 hours
 Earning commission (Contributions
Act)
 Employees’ on a learner ship
 Public Servants
 Foreign Nationals special contracts
 Members of Parliament, Cabinet,
Ministers, Municipal Councillors
3 (1)
Benefit type: All Benefits
Ultimately only 3 exclusions
 Employees working less than 24 hours
 Earning commission (Contributions
Act)
 Members of Parliament, Cabinet,
Ministers, Municipal Councillors

11. AMENDMENTS
OLD VS NEW
SECTION 5
Not in the Principal Act
5 (d)
Benefit type: All Benefits
To make provisions for the refinancing
of the Unemployment Insurance
Beneficiaries to facilitate re-entry into
the labour market

12. AMENDMENTS
OLD VS NEW
UNEMPLOYMENT INSURANCE ACT 63
of 2001
UNEMPLOYMENT INSURANCE
AMENDMENT ACT 10 of 2016
SECTION 12
 Not in the Principal Act
12 (1B)
Benefit type: Unemployment
Benefits
 Provide for the payment of
benefits to contributors who lose
part of their income owing/due to
reduced working time (SHORT
TIME)

13. AMENDMENTS
OLD VS NEW
SECTION 12
Paid on the sliding scale of 38% to 60%
12 (3) (c)
Benefit type: Maternity Benefits
To provide for a 66% fixed rate of the payment
of maternity benefits
Paid on the sliding scale of 38% to 60% for 238
days
 The Approval and Payment from date for
discretionary benefits, is day after
termination date.
 The Approval and Payment date for
Unemployment benefits, is date of
Application
12 (3) (d)
Benefit type:
Unemployment/Illness/Adoption/Dependant
Benefits
Pay the first 238 days at a rate between 38 –
60% and then from 239 to 365 days at a flat
rate of 20%
 The Approval and Payment from date for
all benefits, except dependent benefits, will
be day after termination date

14. AMENDMENTS
OLD VS NEW
UNEMPLOYMENT INSURANCE ACT 63 of 2001 UNEMPLOYMENT INSURANCE AMENDMENT
ACT 10 of 2016
SECTION 13
13 (a)
Benefit type: All Benefits
 Credits were calculated at a rate of 6:1 in a
four year cycle from the date of application
up to a maximum of 238 days
13 (3)
Benefit type: All Benefits
 Credits are calculated at a rate of 4:1 in a
four year cycle from the date of
unemployment up to a maximum of 365
days
13 (3)
Benefit type: All Benefits
 “less any days of benefit received by the
contributor during this period” except in
the case where there was a maternity claim
in the last 4 years (de-linking)
13 (6)
Benefit type: All Benefits
 Credits claimed in the 4 years preceding the
date of application will be subtracted,
except in the case where there was a
maternity claim in the last 4 years (de-
linking)

15. AMENDMENTS
OLD VS NEW
UNEMPLOYMENT INSURANCE ACT 63 of 2001 UNEMPLOYMENT INSURANCE AMENDMENT
ACT 10 of 2016
SECTION 14
 Not entitled to benefits if the contributor
was receiving benefits from COID or any
other Unemployment Fund established by
a Bargaining or Statutory Council
This section in the Act has been deleted.
Contributors are entitled to benefits while in
receipt of benefits from COID or any other
Unemployment Fund established by a
Bargaining or Statutory Council
SECTION 17
17 (2)
Benefit type: Unemployment Benefits
 The application must be made within 6
months from date of termination
17 (2)
Benefit type: Unemployment Benefits
 The period is extended from 6 months to
12 months to apply for Unemployment
benefits

16. AMENDMENTS
OLD VS NEW
UNEMPLOYMENT INSURANCE ACT 63 of
2001
UNEMPLOYMENT INSURANCE
AMENDMENT ACT 10 of 2016
25 (2)
Benefit type: Maternity Benefits
 There was an option to appeal the
eight weeks and after the 6 months
25 (2)
Benefit type: Maternity Benefits
 The option to appeal has been
removed /WAIVED if the application is
submitted after 12 months
SECTION 30
30 (1) (b)
Benefit type: Dependant Benefits
 The period in which the Dependents
may apply for benefits on behalf of the
Deceased is 6 months from date of
death
30 (1) (b)
Benefit type: Dependant Benefits
 Extending a period in which the
Dependents may apply for benefits on
behalf of the Deceased within 18
months from date of death

17. AMENDMENTS
OLD VS NEW
30 (2A)(a)
Benefit type: Dependant Benefits:
NOMINATION OF BENEFICIARIES BY THE
CONTRIBUTOR
 Not in the Principle Act
30 (2A)(a)
Benefit type: Dependant Benefits
NOMINATION OF BENEFICIARIES BY THE
CONTRIBUTOR
 Section 30 is further amended by the
insertion of a new provision allowing
contributors to nominate their beneficiaries
in cases of Death Benefits
 Not in the Principle Act
30 (2A)(b)
Benefit type: Dependant Benefits
 Any Nominated Beneficiary will qualify for
benefits if there is no surviving Spouse, Life
Partner or dependent Children of the
Deceased contributor

18. LABOUR LAW AMENDMENT
 Accommodates for two new benefit types:
o Parental Leave (to cover other parent who is not entitled to maternity
benefits)
o Commissioning Parental Leave (Surrogacy)
 Parental leave = Ten (10) days
 Commissioning Parental Leave (Surrogacy) = Ten (10) weeks
 Amends Adoption leave entitlement to Ten (10) weeks

19. LABOUR LAW AMENDMENT
 Adoption Benefits
 Payment regime : Flat rate of 66%
 Delinked
 One party (“ee”) to apply for Adoption whilst second party to apply for
Parental leave
 Claim to be submitted within 12 months from adoption order date

20. LABOUR LAW AMENDMENT
 Parental Benefits
 Payment regime : Flat rate of 66%
 Delinked
 Commissioning Parental Benefits (CPB)
 Payment regime : Flat rate of 66%
 Delinked
 One party (“ee”) to apply for CPB whilst second party to apply for
Parental leave

21. Matters of Emphasis [New
Amendments]
By the 7th of every month employers must declare
their employees regardless of whether there were
changes or not
The Minister of Labour will issue a regulation on
special dispensation applicable to domestic
employers and small businesses or enterprises
regarding the submission of information
The Act prohibits agency or person purporting to
be acting on behalf of the applicant to charge any
fee against the applicant
21

22. How to apply for UIF benefits
• Personally visit nearest Department of
Employment and Labour offices
• Submit application online at
www.ufiling.co.za
• For illness benefits a proxy can apply on
behalf of the client
• UIF will soon be launching USSD
channel
22

23. Matters of Emphasis
• A member of a CC and Directors of a Company are liable
to contribute to UIF
• Employers who fail to pay contributions on time are
liable to pay 10% penalty and interest in addition to
the outstanding contribution amount
• Employers can pay annual contributions provided such
contributions will be paid upfront
• Employer who ceases to operate must de-register
23

24. Matters of Emphasis
• Employers to note that it is wrong to submit incorrect
declarations as that leads to invalid overpayments
• It is fraud to draw UIF benefits whilst employed
• If one is in receipt on UIF benefits and start working
again, s/he must inform UIF office as continuing drawing
UIF benefits whilst employed will lead to an
overpayment [except for RWT’s]
• Information about UIF clients cannot be given to a third
party
24

25. Matters of Emphasis
• Since 01/04/2002 Seasonal workers are liable to
contribute to UIF
• Since 01/04/2003 Domestic workers are liable to
contribute to UIF
• Since 07/02/2007 a person who is in receipt of State Old
Age Pension, Disability Grant is liable to contribute to
UIF
• Since 01/03/2018 Leaners/interns/expatriates are liable
to contribute to UIF
25

26. Challenges from employers
• Declarations after termination date
• Incorrect completion of UIF forms (UI-2.7, UI-
2.11, UI-19 and salary schedule
• E-declarations vs UI-19 discrepancies
• Employers do not indicate break in contracts,
they indicate as a continuous period
• Quoting incorrect UIF Ref numbers when
making payments
• Not quoting UIF Ref numbers when making
payments
• Change of ownership
26

27. Contact Numbers
• Vernon Mac Leod : 043 701 3315
• Philiswa Madikazi : 043 701 3332
• Ntombomzi Dlova : 043 701 3338
• Zukiswa Soldaat : 043 701 3333
27

28. Contact Email Addresses
• vernon.mcleod@labour.gov.za
• philiswa.madikazi@labour.gov.za
• ntombomzi.dlova@labour.gov.za
• zukiswa.soldaat@labour.gov.za
28

29. Thank You…
Chief Directorate Communication | 2017.00.00
29