Unemployment Insurance Fund for Domestic Workers

Who is a domestic worker?

Domestic workers are employees who perform domestic work in the home of their employer, and includes:

• gardeners,
• domesteic drivers,
• persons who looks after children (nannies), the aged, sick, frail or disabled in a private household,
• but doesn't include farm workers.

If any domestic worker employed by you work more than 24 hours per month, you must register them with the Unemployment Insurance Fund (UIF).

Here's a guide to assist domestic workers and their employers with the new minimum wage legislation and the conditions of employment. 

What is the Unemployment Insurance Fund (UIF)?

The fund offers short term financial assistance to workers when they become unemployed or are unable to work because of illness, maternity or adoption leave. The fund also assists the dependants of a contributing worker who has died.

The Unemployment Insurance Act (No 32 of 2003) and the Unemployment Insurance Contributions Act (No. 4 of 2002) apply to all employers and workers including part-time and full-time domestic workers as listed above.

As an employer you're responsible for making sure that all employees are registered with the UIF. If your employee has been registered and the contributions are paid, then your employee will be able to claim from the fund.

How does the fund help domestic workers?

Employees who are registered with the UIF, and who have been paying contributions to the fund, can claim if they lose their jobs or can’t work. The fund provides the following benefit options:

• Unemployment benefits - A worker who contributed to the fund and whose employment has been terminated can claim. You can’t claim if you resign from your job.
• Illness benefits - A worker who’s unable to work because of ill health can claim for 6 months.
• Death benefits - If a worker who contributed to the fund dies, their dependents can claim.
• Adoption benefits - A worker who contributes to the fund and who’s adopting children below 2 years of age, can claim if they take unpaid leave to look after the child.
• Maternity benefits - A worker who’s pregnant can claim maternity benefits before and after the child is born.

The amount you can claim depends on how long you have been contributing to the fund. You’ll be paid a percentage of up to 58% of a day's salary for every 6 days that you worked while contributing to the fund.

Paying monthly contributions

Every month, the employer contributes 1% of what they pay to the domestic worker to the UIF. In turn, the domestic worker also contributes 1%. It is the employer's responsibility to ensure that these payments are made.

The contributions must be paid before the 7th of every month. Alternatively, the contributions can be paid in advance every 3, 6 or 12 months.

If you who want to pay the UIF annually, you must send a note to the UIF giving the UIF your name and employer reference number. You’ll have to indicate that you plan to pay annually. Payment must be made before 7 March every year.

You can send the note in any of the following ways:

Mail it to:
UIF
Pretoria
0052

Fax: 012 337 1636

Email: annual.upfront@labour.gov.za

Employers registered for tax purposes must pay their contribution to the South African Revenue Service (SARS). Those employers who are not registered for tax purposes must pay their contributions directly to the UIF.

Employers may not:

• Deduct more than 1%.
• Deduct outstanding amounts when they fall behind with payments.
• May not ask for a fee deducting the money.
   

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