If you're hiring your first employee in South Africa, there are three separate registrations you're legally required to handle — here's what each one is, and which ones actually apply to you.
The Unemployment Insurance Fund (UIF) is compulsory for any employer with staff working 24+ hours a month. It provides short-term financial support to employees who lose their job, go on maternity leave, or can't work due to illness.
PAYE (Pay As You Earn) is how employers withhold income tax from employee salaries and pay it over to SARS on their behalf, rather than employees paying tax themselves at year-end.
The Skills Development Levy (SDL) funds employee training and skills development through SETAs (Sector Education and Training Authorities).
UIF applies to almost every employer. PAYE only applies once you're paying salaries above the tax threshold. SDL only kicks in once your annual payroll passes R500,000 — many small employers won't need it yet.
Non-compliance can lead to penalties, interest, and compliance orders from the Department of Labour or SARS. The UIF has actively targeted non-compliant employers in recent years, recovering unpaid contributions.
Yes — if a domestic worker works 24+ hours a month for you, UIF registration is required by law, the same as for any other employee.
Browse our employer registration services, or chat with us on WhatsApp and we'll handle your UIF, PAYE and SDL registrations.