Are you wondering if your domestic help has to register for UIF? Unemployment Insurance Fund (UIF) is a compulsory scheme that offers temporary financial help to people who lose their job or have to take a break due to some illness or injury, or pregnancy. Moreover, domestic workers also come under the term ‘employer,’ and you must register them for UIF.
According to the Unemployment Insurance Act 63 of 2001, a domestic worker is also an employee. It includes everyone who is a gardener, driver, cleaner, caregiver, or doing any work in their employer’s home. Additionally, anyone working more than 24 hours a month is an employee, and the law compels them to contribute to the UIF.
Are Domestic Workers Employees?
According to the Unemployment Insurance Act, a domestic worker is also an employee because they work at the employer’s private household. Even though their duties include domestic household duties, their total monthly hours are 24 or more. So, they are considered employees and therefore have a right to have a little backup in case of any unfortunate occurrence.
Domestic Workers’ Contribution to UIF
The law has made it mandatory for domestic workers to contribute to the Unemployment Insurance Fund (UIF). Their total contribution calculates in percentages. Therefore, UIF takes 1% of an employee’s (domestic worker in this case) gross salary and contributes it to the fund every month. The employer must also add 1% to it.
The employer is responsible for deducting this amount from the worker’s salary and paying it to the UIF, as domestic workers do not usually have much information on this process.
UIF Eligibility for Domestic Workers
The UIF eligibility criteria for domestic workers are very simple. First and foremost, they must work at least 24 hours or more per month for a single employee. Secondly, their employer should register them for UIF and contribute regularly to the fund. If they meet these two requirements, they can easily claim for UIF after losing their jobs, getting sick and injured, etc.
How to Register a Domestic Worker for UIF?
If you are an employer with a domestic employee, you must register them for the UIF benefits. Moreover, the state makes it compulsory, and you can get penalties if you do not. Let me guide you through the process of registration in a step-by-step manner.
First, assemble all necessary documents so that registering and uploading them at once is easy and convenient. You will need the following;
- Your Identity Document (ID) or passport
- Proof of employment in any form. For instance, you can submit a contract or letter of employment.
- Identity Document (ID) or passport of the domestic worker/employee
- Domestic worker’s address (gather proof of the address in the form of a utility bill, bank statement, etc.)
- Next, visit the Department of Labor’s website; find the ‘UIF’ tab and click on it.
- Then, click on ‘register’ and fill in your and your employee’s personal details and your banking details so that UIF can deposit payment into your account.
- Finally, after completing the whole process, you will receive a confirmation email that the registration was successful.
How to Make Monthly Contributions?
After the registration process, you have to make monthly contributions on behalf of your employee. The total contribution as of now is 2% of the employee’s gross salary. Moreover, this 2% includes a 1% deduction from the employee’s gross salary and a 1% contribution by the employer.
Furthermore, employers can make these monthly contributions through an online portal or by visiting a UIF office.
How to Submit a Claim for UIF Benefits?
If you want to submit a claim for the UIF benefits in case your employee gets ill, injured, pregnant, or goes for adoption. You should log in to their online portal, fill in all the necessary information, and upload the documents.
Moreover, UIF will take some time to process the information and documents and then decide whether your employee is approved for UIF benefits.
I have not contributed monthly to UIF, and my employee asks for UIF benefits; what should I do?
You must do it as soon as possible if you have not registered your employee yet. However, if you have registered and not made the necessary contributions, you must make back payments for the missed months, and only then will your employee be able to claim UIF benefits.
In short, domestic workers are included as an employee in the UIF benefits. They have equal rights on these benefits if they lose their job or get injured or ill. They can also claim it if they go for adoption or maternity. Moreover, UIF is a compulsory insurance scheme, so the employer must register them and pay a contribution of 2% of their monthly salary.