4 min read · Updated 2026
UIF for small businesses and sole proprietors
When South African small businesses and sole proprietors must register for UIF, how the 1% + 1% contributions work, and whether self-employed people are covered.
Quick answer
UIF (the Unemployment Insurance Fund) is for employees. Once you employ someone who works more than 24 hours a month, you must register as an employer and pay UIF: 1% from the employee and 1% from you, on pay up to the ceiling set by the Department of Employment and Labour. If you're a self-employed freelancer with no employees, you generally don't pay UIF and can't claim from it.
Registering as an employer
- Register with the Department of Employment and Labour (uFiling) for UIF
- Register with SARS for PAYE and UIF on eFiling (form EMP101e)
- Declare and pay monthly on the EMP201
- Submit the EMP501 reconciliations twice a year
- Include domestic workers if you employ one more than 24 hours a month
Sole proprietors and (Pty) Ltd owners
A sole proprietor is not their own employee, so they don't contribute to UIF for themselves. If you run a (Pty) Ltd and pay yourself a salary as a director, check the current rules with SARS and the Department, because cover for owner-directors depends on how you're paid.
Check current figures
The earnings ceiling for UIF contributions changes from time to time. Check the current figure on labour.gov.za before running payroll.
Frequently asked questions
Can a sole proprietor register for UIF?
Only as an employer for staff. A sole proprietor isn't covered for themselves.
How much is UIF?
2% of the employee's pay: 1% deducted from the employee and 1% paid by the employer, up to the earnings ceiling.
General information only, based on South African legislation as of 2026. Confirm your situation with a registered tax practitioner or attorney.