Labour on registered domestic employers of Unemployment Insurance
Fund

Employers urged to adjust domestic contributions

10 December 2007

The Department of Labour would like to advise its more than 550 000 domestic
employers registered with the Unemployment Insurance Fund (UIF) of 7 January
2008 deadline to submit new details of the more than 632 000 domestic workers
in line with the new minimum wages for the sector.

The department's announced 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 before going on vacation. This will help to avoid the last minute
rush in January," he emphasised.

Sebetso added that employers were expected to deduct one percent from
domestic workers' pay and themselves contribute the other one percent for their
workers, while two percent has to be paid into the UIF account.

"The applicable two percent contribution 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 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 www.ufiling.gov.za, provided employers with a secure, convenient
way of paying contributions and making declarations to the fund.

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

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

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