Labour on Unemployment Insurance Fund (UIF) deadline for hospitality
industry

Hospitality: Unemployment Insurance Fund (UIF) deadline
looms

4 July 2007

The hospitality industry has until the end of this week (7 July 2007) to
inform the Unemployment Insurance Fund of the implementation of the new wages
of an estimated half a million workforce employed in the sector in line with
the recently launched minimum wages for the sector.

In terms of the new sectoral determination for the hospitality industry,
employers with less than 10 employees are now required to pay a minimum wage of
R1 480 per month, while those with more than 10 employees were required to pay
R1 650 per month.

Speaking in Pretoria today, UIF Spokesperson, K Sebetso, said it was against
this background that all employers in this industry were now required to update
details of their workers with the UIF in line with the new minimum wages before
the end of this week. Sebetso said in providing assistance to employers in this
sector, the UIF would like to advise all employers of the following:

* Those employers with less than 10 workers, the UIF contribution must not
be lower than R14,80 from the employer and also R14,80 from the remuneration of
the worker. The total 2% contribution that must reach the UIF every month must
therefore be R29,60.
* The UIF contribution for employers with more than 10 employees must not be
less than R16,50 for the employer and R16,50 from the salary of the employee.
The total contribution would then amount to R33,00.

According to Sebetso, employers have a choice of paying their contributions
annually or monthly. "It is prudent that employers must regularly update
details of their employees, especially any changes in the remuneration, because
this information is used to calculate benefits due to workers in times of
need," he explained.

Sebetso also reminded employers in the sector that it was obligatory to
register their businesses and employees with the UIF, as determined by the UI
Act. "This is to afford all workers access to social security which is intended
to provide temporary relief during the distressing period of unemployment," he
said.

He concluded by warning that failure to comply with the law constitutes a
punishable offence which could lead to a fine or imprisonment, or both a fine
and imprisonment.

In order to ensure an effective and hassle free declarations process, the
UIF has created a platform which employers could easily use in the most comfort
of their employment. The online system called uFiling could be accessed on
http://www.ufiling.gov.za Employers
could also call the call centre at 012 337 1680.

Enquiries
K Sebetso
Cell: 073 269 9870

Issued by: Department of Labour
4 July 2007

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