3 December 2007
The Department of Labour has urged the more than 550 000 domestic employers
registered with the Unemployment Insurance Fund (UIF) to start adjusting their
UIF contributions in line with the new minimum wages for the sector.
This follows the department's announcement last week of a 9,3 percent pay
rise in the wages of domestic workers from R1 066,83 to R1 166,05 per month for
employees working more than 27 hours per week in higher paid areas or urban
areas with effect from 1 December 2007. Domestic workers in rural areas are now
expected to earn R946,04 as compared to the previous R865,54 per month.
UIF Spokesperson, Kgomotso Sebetso, said that not only were domestic
employers expected to adjust their minimum rates, but also expected to adjust
their UIF contributions.
"Domestic employers are also required by law to inform the UIF of these
changes by submitting a new completed UI 19 form before 7 January next year. It
is advisable for employers to start updating their records with the UIF
immediately and avoid the last minute rush," he emphasised.
Sebetso added that employers were expected to deduct 1% from domestic
workers' pay and themselves contribute the other 1% for their workers, while
two percent has to be paid into the UIF account.
"The applicable two percent contributions in line with the new minimum wage
is R23,32 for urban areas and R18,92 for rural areas," he said.
He also warned employers that failure to submit latest information of your
worker/s was an offence punishable by law. An offender could face a jail term
or a fine could be imposed or both punishments could be meted out at the same
time.
"We want to take this opportunity to urge all employers to ensure that they
do register their workers with the UIF as the Fund contributes to the
alleviation of poverty by providing effective short-term insurance against job
loss. At the same time, we urge domestic workers to report their employers if
they suspect or have evidence that they are not complying with the law,"
Sebetso added.
He also revealed that the UIF, which experienced just fewer than eight
percent increase in the registration of domestic workers in the previous
financial year, had to date registered more than 632 000 domestic workers.
"Of the more than R213 million collected from domestic employers since the
extension of social security to the domestic sector in April 2003, more than
R99 million was paid out in benefit claims to more than 87 000 workers from
this sector by July this year," Sebetso said.
He concluded by reminding domestic employers of the existence of an online
collection channel for the sector. He said the uFiling system, which could be
accessed on http://www.ufiling.gov.za,
provided employers with a secure, convenient way of paying contributions and
making declarations to the fund.
Enquiries:
Kgomotso Sebetso
Issued by: Department of Labour
3 December 2007
Source: Department of Labour (http://www.labour.gov.za)
