Domestic employers and their workers are included under the Act since 1 April 2003. The contribution that employers must deduct from a worker’s pay is 1% of the worker’s total earnings, excluding commission. In addition to the 1% deducted from the worker, the employer also contributes 1% for every worker that they employ.

The total contribution paid to the UIF is therefore 2%.

Example:
If a worker earns R1 000 per month, the employer must deduct 1%, namely R10. In addition, the emloyer must pay R10 for that worker. The total of R20 must therefore be paid to the UIF or SARS.

Earnings Ceiling
Workers who earn more than the annual, montly or weekly maximum earnings ceiling must also contribute to the Fund, but their contributions are worked out on the maximum earnings ceiling.

Example:
If a worker earns R10 000 per month and the monthly earning ceiling is R1 096 per month, the worker’s contribution will be worked out on R8 836.

What employers may not do
Employers may not deduct more than 1%; deduct outstanding amounts when they fall behind with payments; and may not ask a fee for deducting the money.

If employers deduct too much money by accident, they must pay the extra money back to workers.

The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers, but not to: workers working less than 24 hours a month for an employer; learners; public servants; foreigners working on contract who are going to be repatriated at the end of their contract; Employees in receipt of an old age pension are, since 07/2/2007, no longer excluded from contributing towards UIF; or workers who only earn commission.