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    Labour on UIF contributions for domestic workers

    Employers urged to adjust domestic contributions 3 December 2007

    The Department of Labour has urged the more than 550 000 domestic employers registered with the Unemployment Insurance Fund (UIF) to start adjusting their UIF contributions in line with the new minimum wages for the sector.

    This follows the department's announcement last week of a 9,3 percent pay rise in the wages of domestic workers from R1 066,83 to R1 166,05 per month for employees working more than 27 hours per week in higher paid areas or urban areas with effect from 1 December 2007. Domestic workers in rural areas are now expected to earn R946,04 as compared to the previous R865,54 per month.

    UIF Spokesperson, Kgomotso Sebetso, said that not only were domestic employers expected to adjust their minimum rates, but also expected to adjust their UIF contributions.

    "Domestic employers are also required by law to inform the UIF of these changes by submitting a new completed UI 19 form before 7 January next year. It is advisable for employers to start updating their records with the UIF immediately and avoid the last minute rush," he emphasised.

    Sebetso added that employers were expected to deduct 1% from domestic workers' pay and themselves contribute the other 1% for their workers, while two percent has to be paid into the UIF account.

    "The applicable two percent contributions in line with the new minimum wage is R23,32 for urban areas and R18,92 for rural areas," he said.

    He also warned employers that failure to submit latest information of your worker/s was an offence punishable by law. An offender could face a jail term or a fine could be imposed or both punishments could be meted out at the same time.

    "We want to take this opportunity to urge all employers to ensure that they do register their workers with the UIF as the Fund contributes to the alleviation of poverty by providing effective short-term insurance against job loss. At the same time, we urge domestic workers to report their employers if they suspect or have evidence that they are not complying with the law," Sebetso added.

    He also revealed that the UIF, which experienced just fewer than eight percent increase in the registration of domestic workers in the previous financial year, had to date registered more than 632 000 domestic workers.

    "Of the more than R213 million collected from domestic employers since the extension of social security to the domestic sector in April 2003, more than R99 million was paid out in benefit claims to more than 87 000 workers from this sector by July this year," Sebetso said.

    He concluded by reminding domestic employers of the existence of an online collection channel for the sector. He said the uFiling system, which could be accessed on, provided employers with a secure, convenient way of paying contributions and making declarations to the fund.

    Last edited by Dave A; 06-Dec-07 at 04:19 PM.

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