UIF, PAYE & SDL Registration for Employers in South Africa

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.

UIF Registration

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.

  • Who must register: Any employer paying a salary — Pty Ltd companies, sole proprietors, NGOs, and domestic employers are all included.
  • Deadline: Employers must register within 14 days of hiring their first worker.
  • Contributions: 1% of the employee's salary from the employee, matched by 1% from the employer — 2% total, paid monthly.
  • Where you register: With the Department of Labour, and separately for UIF contributions through SARS as part of tax registration.

PAYE Registration

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.

  • Who must register: Any employer paying salaries above the tax threshold.
  • How it works: You deduct tax from each employee's pay monthly and submit it to SARS along with a monthly declaration (EMP201).

SDL Registration

The Skills Development Levy (SDL) funds employee training and skills development through SETAs (Sector Education and Training Authorities).

  • Who must register: Employers with an annual payroll above R500,000.
  • Contribution: 1% of total payroll, paid monthly to SARS.

Frequently asked questions

Do I need to register for all three?

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.

What happens if I don't register?

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.

Do domestic workers need to be registered too?

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.

Hiring soon? Let's get you registered.

Browse our employer registration services, or chat with us on WhatsApp and we'll handle your UIF, PAYE and SDL registrations.