Labour on taxi contributions to Unemployment Insurance Fund

Taxi contributions due to the Unemployment Insurance Fund

20 June 2007

Employers in the taxi sector are advised that the total monthly contribution
due to the Unemployment Insurance Fund (UIF) in line with the current minimum
wage must not be lower than R28,62.

The current minimum wage in terms of the Taxi Sectoral Determination is R1
431 per month.

UIF spokesman Kgomotso Sebetso said today (Tuesday) the UIF has been
inundated with calls from taxi operators wanting to know how much should be
contributed to the Fund.

He explained that the UIF contribution was made up of 1% of the worker's
remuneration and 1% of the employer's contribution in respect of each worker.
"The total contribution that is paid is therefore 2%, which must be forwarded
to the UIF every month," he said.

"We want to caution taxi operators that should they fail to deduct monthly
contributions, then the 2% arrear contribution is due by you the employer and
under no circumstance should it be deducted from the worker's pay," Sebetso
added.

He said the UIF is aware of reports that there were some sections of taxi
employers who were defying the law by not registering their businesses and
workers with the UIF.

Sebetso warned that time is running out for errant taxi operators as workers
in this sector were growing impatient and putting pressure on the UIF to take
action against such employers.

"Workers are aware of their rights and are starting to ask questions. Taxi
employers need to take advantage of the extension of the tax amnesty which now
expires at the end of this month (June). If you take advantage of the amnesty,
you will not be punished for past non-compliances," he said

Sebetso concluded by revealing that the highest number of registration on a
month to month basis was recorded in May with 342 taxi employers complying with
the law bringing the total number of registered employers to 3 681. He said
that the UIF also experienced an increase in the number of applications for
unemployment benefit from the sector during the previous month.

Enquiries:
Kgomotso Sebetso
Cell: 073 269 9870
E-mail: kgomotso.sebetso@labour.gov.za

Issued by: Department of Labour
20 June 2007
Source: Department of Labour (http://www.labour.gov.za)

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