Every week (or month, if the employee is monthly paid), the employer deducts 1% of each employee’s wages for UIF. This works out to 1c for every R1 the employee earns. The employer also pays 1% of the employee’s wage. So, for every cent the employee pays to UIF, the employer pays the same. The company then sends all these contributions to the South African Revenue Services (SARS) (if the company is registered with SARS for tax purposes (PAYE) or for Skills Development Levies (SDL)).

The Unemployment Insurance Contributions Act says all employers have to submit their UIF payments together with their payments of PAYE and SDL before the 7th of each month. This is all written on one form called the EMP 201 return form (the form used to submit returns to SARS).

(See: Unemployment Insurance Fund [UIF])

Where employers are not required to register with SARS for PAYE or SDL purposes they must pay the UIF contributions to the Unemployment Insurance Fund using the UF 3 return form.