UIF Registration in South Africa: A Step‑by‑Step Guide for Small Businesses

UIF Registration in South Africa: A Step‑by‑Step Guide for Small Businesses

Disclaimer: This guide provides general information only and is not legal, tax, or financial advice. UIF rules, thresholds, and processes can change, and how the law applies may differ based on your specific circumstances. Always confirm details with SARS, the Department of Employment and Labour, or a qualified professional before acting.

If you’re hiring staff in South Africa, UIF is not optional.

Registering for UIF, paying contributions, and submitting declarations are legal requirements. Done right, it protects your employees if they lose their jobs, go on maternity leave, or can’t work for medical reasons. Done badly (or not at all), it leads to penalties, interest, and stressful letters from the Department of Employment and Labour or SARS.

This guide explains how UIF registration works in South Africa, who must register, which UIF application forms you need, and how to stay compliant every month. It’s written specifically for entrepreneurs and small business owners, not HR professionals.

Govchain can handle UIF registration and ongoing payroll compliance for you, but you’ll also see exactly how the process works if you prefer doing it yourself.

1. What is UIF and why should your business care?

The Unemployment Insurance Fund (UIF) is a government fund that provides short‑term financial support to employees if they:

• Lose their jobs
• Go on maternity leave
• Are unable to work due to illness
• Have reduced working hours
• Are dependants of a deceased contributor

As a small business owner, you must deduct UIF from your employees’ salaries and pay it over to the state, usually via SARS.

How much is UIF?

• Total UIF contribution: 2% of the employee’s remuneration
• 1% employer contribution (your cost)
• 1% employee contribution (deducted from salary)
• UIF is capped at a maximum salary (the UIF earnings ceiling). Even if someone earns more than the cap, you only calculate UIF up to that ceiling.

Example:

• Employee earns R8 000 per month
• UIF total = 2% of R8 000 = R160
• Employer pays R80
• Employee pays R80 (deducted from payslip)

Govchain Payroll calculates these contributions automatically and prepares everything needed for UIF and PAYE, which can significantly reduce admin errors.

2. Who must register for UIF?

Employers who must register

You must register for UIF if:

• You pay anyone who works more than 24 hours per month for your business, and
• They are your employees (not true independent contractors)

This includes:

• Pty Ltd companies
• Close corporations
• Sole proprietors
• Partnerships
• NGOs and NPOs

If you are paying a salary, there’s a very high chance you need to register.

Employees who must be covered

Most employees must be registered for UIF, except:

• Employees working less than 24 hours per month
• Commission‑only earners without guaranteed basic pay (case‑by‑case, get proper advice)
• Students working only as part of a training programme
• Employees who receive a state pension only and no actual salary
• Employees working for the government under certain public service categories

If you’re unsure whether someone should be on UIF, assume yes and get clarity rather than excluding them.

3. When must you register for UIF?

Legally, you must register as an employer within 7 days of employing your first employee who works more than 24 hours per month.

In practice:

• Register before or as soon as you run your first payroll
• Start deducting UIF from the first payslip
• Make sure you can submit your first monthly EMP201 to SARS with UIF included

If you’ve been trading for a while and never registered for UIF, you may need to:

1. Register now, and
2. Back‑pay UIF contributions for previous months

4. UIF registration options: SARS vs Department of Labour

There are two main ways to register for UIF as an employer:

1. Through SARS (recommended for most small businesses)
2. Directly with the Department of Employment and Labour (UIF office / uFiling)

Many businesses use SARS so UIF, PAYE, and SDL all sit under one account.

Option 1: UIF registration via SARS (common route)

Usually done when you register for PAYE.

You can:

• Register online via SARS eFiling, or
• Use a service like Govchain PAYE registration, which includes UIF registration for your company if required

Once SARS approves your registration, your EMP201 will show a UIF field every month.

Option 2: UIF registration via Department of Labour (uFiling)

If for some reason you aren’t going through SARS (or you’re a domestic employer), you can:

• Register your business on uFiling (the UIF online system)
• Complete the relevant forms online

5. Documents you need for UIF registration

Here’s what you typically need, both for SARS and the Department of Labour.

If you’ve lost your CIPC documents, Govchain’s Company registration documents service can retrieve them for you.

6. How to register for UIF step‑by‑step (SARS route)

This is the most common setup for South African small businesses.

Step 1: Make sure your business exists on SARS’s system

You’ll need either:

• A company income tax number (for a Pty Ltd), or
• A personal tax number if you’re a sole proprietor

If your company is new, Govchain can register your (Pty) Ltd and handle the initial SARS setup as part of a broader compliance package.

Step 2: Register for PAYE, UIF (and SDL if needed)

You can do this:

• Online via SARS eFiling → “Register New Tax Products”, or
• Via Govchain PAYE registration, where the team completes the process for you

You’ll be asked for:

• Employer details (name, trading name, contact details)
• Address details
• Nature of business (industry)
• Start date of first employee

Once processed, your PAYE/UIF reference numbers will be active under your SARS profile.

Step 3: Confirm UIF is active on your EMP201

On eFiling:

1. Go to EMP201
2. Check that UIF fields are visible
3. Verify your payment reference details

Govchain Payroll can sync your employees and payroll data so the UIF amounts match what appears on the EMP201.

Step 4: Set up payroll to calculate UIF

For each employee, you must:

• Mark whether they are UIF‑liable
• Enter salary / wage details
• Ensure the system calculates 1% employee + 1% employer UIF

Govchain Payroll automates UIF calculations so you don’t have to re‑check percentages and caps each month.

Step 5: Start deducting UIF and paying it monthly

• Deduct UIF from each payslip
• Pay total UIF (employer + employee) as part of your EMP201 payment on eFiling

More on this in the monthly compliance section below.

7. How to register for UIF with the Department of Labour (uFiling)

If you prefer or need to register directly with UIF (or you’re not using SARS for payroll taxes), here’s the basic flow.

Step 1: Create a uFiling profile

Go to the official uFiling website and:

• Select “Register as Employer”
• Complete your company and contact details

Step 2: Complete UIF application forms

The system will guide you through electronic versions of forms such as:

• UI.8 – Employer registration
• UI.19 – Employee information (used mainly for declarations / changes)

This is where searching for “uif application form” usually lands business owners. On uFiling these forms are mostly built into the system rather than downloaded.

Have these ready:

• Company details and registration number (if applicable)
• Physical and postal addresses
• Banking details
• Details of each employee (ID, full name, start date, salary)

Step 3: Wait for UIF number and activation

Once processed, you receive a UIF employer reference number. You will then:

• Use uFiling to submit monthly declarations
• Pay contributions either via EFT or within the uFiling system

For most small private companies already on SARS, registering through SARS and managing UIF via a payroll system like Govchain Payroll is usually simpler.

8. UIF application forms: what they are and when you’ll see them

When people google “UIF application form”, they can mean two very different things:

1. Employer UIF registration / declaration forms (what you need as a business), or
2. Employee claim forms (what your staff need when they claim benefits)

Common employer UIF forms

• UI.8 – Employer registration form
• UI.19 – Employer declaration of employees (appointments, terminations, salary changes)

On uFiling, these are captured online, not printed. If you go through SARS, you won’t always see these specific codes; the information is captured via EMP201/EMP501 and payroll systems instead.

Common employee UIF claim forms (for your staff)

Your employees may use forms like:

• UI‑2.1 – Unemployment benefits
• UI‑2.3 – Maternity benefits
• UI‑2.2 / UI‑19 – Employer confirmation and employment history

As the employer, you often need to sign or complete your section when they claim. Keeping your UIF details accurate makes this much easier for everyone involved.

9. Monthly UIF payments and declarations: how to stay compliant

Registering once is not enough. You must keep paying and declaring every month.

9.1 Monthly UIF payment deadlines

If you pay via SARS (EMP201):

• Due date: usually the 7th of the following month
• If the 7th is a weekend or public holiday, SARS may shift the deadline

Example:

• UIF for salaries paid in April is due with the EMP201 by 7 May

9.2 How to pay UIF via SARS (EMP201)

Each month:

1. Run payroll (ideally in Govchain Payroll)
2. Get the UIF totals for the month
3. Log into SARS eFiling
4. Complete the EMP201 with PAYE, UIF, and SDL
5. Pay via eFiling (bank transfer, debit, or credit push)

9.3 UIF declarations (who works for you and what they earn)

Declarations tell UIF who your employees are and what they earn so they can calculate benefits if needed.

• If you use uFiling, you must capture or upload declarations monthly
• If you use SARS and a compliant payroll system, employee information is reported via EMP201/EMP501 and mid‑year / year‑end reconciliations

Govchain Payroll can keep your employee data structured so SARS and UIF data lines up more smoothly.

9.4 What happens if you pay late or don’t pay?

You may face:

• Penalties and interest on outstanding UIF
• Compliance flags at SARS
• Delays or issues when employees try to claim UIF

If you’ve already fallen behind, Govchain can:

• Assess your UIF, PAYE and VAT status in one view
• Help correct historical returns through Govchain Tax and Govchain Compliance™

10. Common UIF mistakes small businesses make

These are problems that often come up in audits or when employees claim.

1. Registering for UIF too late

You hire people, pay them for months, and only later realise you needed to register for UIF. This can mean:

• Back‑dated contributions
• Penalties
• Correcting historical EMP201s

2. Not deducting UIF from all qualifying employees

Examples:

• Leaving casual or part‑time workers off UIF even though they work more than 24 hours per month
• Only deducting from higher earners

3. Incorrect UIF calculations

• Using the wrong percentage
• Not applying the salary cap
• Misclassifying allowances

4. Employee details not matching

• ID numbers captured incorrectly
• Different spellings of names
• Wrong start/end dates

These issues show up when staff try to claim and UIF can’t match their records.

5. No paper trail

• No payslips
• No contracts
• No proof of UIF deductions and payments

Govchain Payroll generates proper payslips, keeps historical records, and feeds accurate data for UIF and PAYE, helping you maintain a clean audit trail.

11. Where UIF fits into your wider compliance stack

UIF doesn’t live alone. Once you start hiring, several obligations kick in together:

• UIF registration
• PAYE registration and monthly EMP201s
• Possibly SDL (Skills Development Levy) if your payroll is above the threshold
• COID registration and Letter of Good Standing if you have employees doing physical work

Govchain helps you line these up correctly:

• UIF registration – register your business for UIF with the relevant authorities
• PAYE registration – so you can legally deduct tax from salaries
• COID registration + Letter of Good Standing – often needed for contracts and tenders
• Govchain Payroll – automates UIF, PAYE and payslips
• Govchain Compliance™ – keeps an eye on annual returns, SARS, and other deadlines

If you’re already running a side hustle as a sole proprietor, Govchain’s New Company Registration Package can move you into a proper Pty Ltd, then bolt on payroll and UIF in a compliant way.

12. DIY vs using Govchain for UIF registration

You can handle UIF registration yourself.

It makes sense to DIY if:

• You have one or two employees
• You are comfortable with SARS eFiling and government portals
• You have time to read the guides and handle forms

Using Govchain is usually smarter when:

• You’re registering PAYE and UIF at the same time
• You’re setting up a new company and want everything correct from day one
• You’d rather not learn UIF rules in detail and prefer a done‑for‑you setup
• You’re already behind on UIF and need help fixing past periods

Govchain brings everything together:

• Register company → New Company Registration Package
• Register PAYE + UIF → PAYE registration + UIF registration
• Run payroll → Govchain Payroll (UIF and PAYE auto‑calculations)
• Stay compliant → Govchain Compliance™ and Govchain Tax

You focus on running your business, while Govchain helps keep the compliance admin under control.

13. Quick UIF registration checklist for South African small businesses

Use this as a simple action plan.

Before you hire your first employee:

• Decide on structure (sole prop or Pty Ltd)
• If Pty Ltd, register with CIPC (Govchain can do this)
• Get a tax number from SARS

When you hire your first qualifying employee:

• Get a signed employment contract
• Collect ID copy and personal details
• Confirm they work more than 24 hours per month

UIF registration setup:

• Register for PAYE + UIF with SARS (or via Govchain)
• Confirm UIF shows on EMP201
• Set up payroll (Govchain Payroll recommended)

Each month:

• Run payroll and check UIF totals
• Deduct employee UIF and add employer UIF
• Submit EMP201 and pay SARS by the due date

When an employee leaves or claims:

• Update their status in your payroll
• Provide UIF‑related info / forms (e.g. UI‑19 details)
• Make sure your UIF payments and declarations are up to date

UIF Registration FAQ (South Africa)

1. How do I register for UIF as an employer in South Africa?

You can:

• Register for UIF through SARS when you register for PAYE (most common), or
• Register directly on uFiling (Department of Employment and Labour)

If you want a guided route with less admin, Govchain’s PAYE registration and UIF registration services can handle the setup for you.

2. What is the UIF application form for employers?

For employers, the UIF application form usually refers to:

• UI.8 – Employer registration
• UI.19 – Employee declarations and changes

On uFiling, these are captured electronically. If you use SARS, your payroll and EMP201/EMP501 submissions carry the same information in a different format.

3. How long does UIF registration take?

Timing varies depending on volume at SARS or the Department of Labour, but typically:

• SARS PAYE + UIF registration: a few days to a couple of weeks
• uFiling registration: often a few working days once documents are correct

4. Can employees claim UIF if I haven’t registered or paid?

In many cases, if you haven’t registered or paid UIF:

• UIF may refuse or delay the claim
• You may be required to pay back‑dated contributions plus penalties

5. Do I have to register domestic workers for UIF?

Yes, if they work more than 24 hours per month for you. Domestic employers typically use uFiling directly.

6. Is UIF registration compulsory for small businesses with only one employee?

Yes. If your one employee works more than 24 hours per month, you must register as an employer and pay UIF.

7. How much UIF do I pay for each employee?

• 1% of their remuneration is deducted from the employee
• 1% is paid by you as the employer
• Total = 2% of the UIF‑liable portion of their earnings, up to the UIF cap

Govchain Payroll does this calculation for every employee automatically, applying the latest thresholds.

8. Where can I get help with UIF registration and payroll?

Govchain offers:

• UIF registration – registration with the UIF authorities
• PAYE registration – set up your PAYE/UIF profile with SARS
• Govchain Payroll – run salaries, UIF, and PAYE in one place
• Govchain Compliance™ – monitor CIPC and SARS deadlines

Everything is managed online, with status updates and support tailored to South African small businesses.

If you’d like to:

• Register UIF correctly,
• Avoid penalties and admin headaches, and
• Have payroll that “just works” every month,

you can set up Govchain Payroll and UIF registration as a straightforward way to get your company on the right side of compliance from the start.