Author: Dave Beattie
Editor’s note: do you feel that you sometimes spend your life explaining concepts to your staff. For example, how their payslip works or how UIF or PAYE works. Why don’t you talk to us about the HRTorQue Learning Management System where we offer courses on the generic legislation and can easily design bespoke courses for your organization on your policies, payslips or even how to use specific tools for their jobs. All courses come with a completion certificate.
Prior to the 1st March 2018, both the employee and the employer were not required to contribute to the UIF, if the employee had entered South Africa for the purpose of carrying out a contract of service, apprenticeship, or learnership within South Africa, and upon termination of the contract, the employer was required by law or by the contract, to repatriate that employee from South Africa.
However, from March 2018, these employers and their employees were required to contribute to the UIF. Both the employee and the employer are required to contribute 1% of the employee’s remuneration to the UIF each month. The contributions are currently limited to R177.12 per month.
Where the foreign employee is remunerated by a local employer or where the employee’s remuneration is reported in a shadow payroll in South Africa, the payroll system should be updated to ensure compliance with the UIF contribution requirements.
Employers are also reminded that Skills Development Levy and Compensation Fund contributions are applicable where foreign employees are employed under a contract of service, apprenticeship, or learnership. Foreign employees are entitled to compensation if they are injured or contract a disease while on duty.
Understanding legislation in the payroll space and keeping up with legislative changes is daunting for most payroll administrators. It is therefore important to attend regular CPD sessions, training, and webinars. To ensure you keep up to date, subscribe to our newsletter and webinar notification channels.