22 June 2007
Employers in the hospitality industry have until the first week of July to
adjust their Unemployment Insurance Fund's (UIF) contributions in line with the
new wage determination for the sector.
Launching the new Sectoral Determination for the Hospitality Sector in May
this year, Minister of Labour, Membathisi Mdladlana, announced that the law
would come into effect on 1 July 2007.
UIF Spokesman Kgomotso Sebetso said in Pretoria today that 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
7 July 2007.
In terms of the Sectoral Determination employers with less than 10 employees
were required to pay the minimum wage of R1 480.00 per month, while those
employing more than 10 employees were required to pay R1 650.00 per month.
Sebetso said in providing assistance to employers in this sector, the UIF
would like to advise all employers to use the following guidelines:
For 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.
Sebetso warned 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.
Enquiries:
Kgomotso Sebetso
Cell 073 2699 870
Issued by: Department of Labour
22 June 2007
