19 September 2007
The Department of Labour wishes to remind employers that the deadline for
the submission of new details of their workers declarations in line with the
increase in the maximum earning level of benefits is 7 October 2007. These
declarations are required as it they are used to calculate benefits due to
workers in the event of temporary unemployment.
Earlier Minister of Labour, Membathisi Mdladlana, announced a seven percent
increase in the maximum income threshold of the Unemployment Insurance Fund
(UIF) with effect from 1 October 2007.
In terms of the Minister's announcement the rate of earnings has been
adjusted from R11 662 to R12 478 per month or R139 944 to R149 736 per annum.
As a result of this increase, the weekly rate also went up from R2 691,23 to R2
879,53.
Unemployment Insurance Fund (UIF) Spokesperson, Kgomotso Sebetso, explained
that the increase in the maximum rate of earnings or remuneration ceiling for
benefits that provided for the two percent contributions happened on a yearly
basis. It was benchmarked against the level of what an artisan was currently
earning.
All workers who earn above the maximum level would only contribute up to the
maximum and when they became unemployed would then receive benefits at the rate
of their contribution.
"The increase also means that the UIF contribution will go up for those
earning on or above the ceiling, while those earning below the ceiling their
contribution remains unchanged. However, the impact of this increase will be
felt right across all the earning levels in terms of benefit payments," he
said.
By adjusting the annual contributory earnings, there was also a
corresponding increase in benefits to workers. This step further highlights the
importance that the fund places on improving the lives of the workers.
Sebetso advised employers of the two main methods to submit their adjusted
payrolls:
* employers who have electronic payroll systems can send their information
to the database electronically in the specified format to declarations@uif.gov.za
* the information could also be submitted manually by filling in a UI-19/UI-19D
form, which is available on our website â http://www.labour.gov.za as well as at
provincial offices and labour centres of the Department of Labour.
The Department of Labour also would like to remind employers that failure to
comply with the provisions of the Unemployment Insurance Act constituted an
offence. An offender shall be liable to a fine or imprisonment, or to both a
fine and imprisonment.
For further assistance employer are urged to visit their nearest labour
centre or the website of the Department of Labour at http://www.labour.gov.za or call the UIF call
centre number at 012 337 1680.
Enquiries:
Kgomotso Sebetso
Cell: 073 269 9870
Issued by: Department of Labour
19 September 2007
