UIF Compliance Requirements for South African Government Tenders

UIF Registration Obligations for Employers

All employers who employ one or more workers for more than 24 hours per month are required to register with the Unemployment Insurance Fund. Registration is done through the Department of Employment and Labour at www.labour.gov.za or via SARS eFiling, where UIF contributions are declared alongside PAYE and SDL on the EMP201 return. Employers must register within seven days of employing their first qualifying worker. Failure to register is an offence under the Unemployment Insurance Contributions Act 4 of 2002.

The UIF contribution rate is 2% of each employee's remuneration, split equally between the employer (1%) and the employee (1%). The employee's share is deducted from their salary and remitted to the Fund together with the employer's contribution. Contributions are capped at the maximum remuneration threshold (currently R17,712 per month as of 2024 — check the current gazette for updates). Workers earning above the threshold contribute at the maximum amount. Domestic workers, seasonal workers, and learnership workers have specific contribution rules.

• Register within 7 days of employing your first qualifying worker
• UIF contribution: 2% of remuneration (1% employer + 1% employee)
• Maximum monthly remuneration for UIF contributions: R17,712 (2024 figure)
• Declare and pay UIF on the monthly EMP201 return via SARS eFiling
• Workers employed for less than 24 hours per month are excluded
• Domestic workers are included — register through the Department of Labour

UIF and Government Tender Compliance Verification

Government tender processes require suppliers to demonstrate compliance with labour legislation, including UIF registration and contribution obligations. The Department of Employment and Labour maintains a register of non-compliant employers subject to compliance orders and directives. Standard Bidding Document SBD 4 requires bidders to declare compliance with all applicable labour legislation. A bidder subject to an enforcement order for UIF non-compliance faces administrative disqualification.

For construction tenders in particular, the CIDB Code of Conduct and Standard Conditions of Contract require principal contractors to ensure that all workers — including subcontractor workers — are covered under the UIF. The Department of Public Works and Infrastructure increasingly audits UIF compliance on large infrastructure projects as part of its enhanced oversight programme. Employers on EPWP (Expanded Public Works Programme) contracts have additional obligations to register all EPWP workers with the UIF.

• Complete SBD 4 declaration of labour law compliance truthfully
• Ensure all employees including subcontractor workers are UIF-registered
• Retain UIF payment confirmation receipts for at least five years
• EPWP contractors must register all EPWP workers with the UIF
• Department of Labour can audit UIF compliance on active government contracts
• Non-compliance enforcement order: immediate impact on tender eligibility

Claiming Benefits and Record-Keeping

Although UIF benefit claims are made by employees (not employers), the employer's role in facilitating claims is critical. When an employee is dismissed, retrenched, or goes on maternity leave, the employer must provide a UI-19 form (Employer Declaration) confirming the nature of the termination or absence and the employee's remuneration history. Without a correctly completed UI-19, employees cannot access their UIF benefits, which can lead to disputes and Department of Labour investigations into the employer's compliance record.

Employers must maintain accurate payroll records showing all UIF contributions made for each employee. These records must be available for inspection by Department of Labour inspectors at any time. Records must be retained for a minimum of five years. SARS eFiling automatically generates an EMP501 reconciliation that includes UIF data, providing a verifiable record of all contributions. For tender audit purposes, being able to produce clean EMP501 reconciliations is evidence of sustained UIF compliance.

• Provide UI-19 form to all departing employees to enable UIF claims
• Retain payroll and UIF contribution records for minimum five years
• EMP501 reconciliation (bi-annual) includes UIF data — maintain for audits
• UIF online services: www.ufiling.labour.gov.za
• Department of Labour UIF enquiries: 0800 030 007
• Ensure UI-19 is issued within 5 days of termination or start of leave

Frequently Asked Questions

Related Guides

• Labour Law Compliance for Government Tenders
• COIDA and Workmen's Compensation
• Employment Equity Act 55 of 1998
• SARS Compliance Overview