If you employ staff in South Africa — even one part-time employee — you are legally required to comply with UIF and COIDA. These two systems protect your employees, protect your business, and ensure you are fully compliant with labour laws.
Let’s break them down in a simple, practical way.
1. What Is UIF?
UIF (Unemployment Insurance Fund) provides financial support to workers if they:
- Lose their job,
- Go on maternity leave,
- Take adoption leave,
- Have reduced working hours,
- Are unable to work due to illness.
UIF is a safety net for employees — and it is compulsory for employers.
Who must register for UIF?
✔ All employers who hire anyone for more than 24 hours per month
✔ Sole proprietors
✔ (Pty) Ltd companies
✔ CCs
✔ NPOs
✔ Domestic employers
Almost everyone must register except:
❌ Independent contractors
❌ Employees working less than 24 hours per month
How UIF Contributions Work
Total UIF contribution = 2% of the employee’s salary
- 1% deducted from the employee
- 1% paid by the employer
UIF is submitted monthly via:
- SARS EMP201 (if registered for PAYE)
OR - uFiling (Department of Labour portal)
How to Register for UIF
Method 1: Register via SARS eFiling (Easiest)
If you already have PAYE, you can register for UIF in minutes.
Steps:
- Log in to eFiling
- Go to: SARS Registered Details
- Click Add Tax Type
- Select PAYE/UIF/SDL
- Submit supporting documents if asked
Once approved, UIF automatically syncs with the Department of Labour.
Method 2: Register Directly With Department of Labour
If you don’t have PAYE yet:
- Visit uFiling.gov.za
- Select “Register as Employer“
- Upload:
- Company registration documents (COR14.3, COR15.1A)
- Director’s ID
- Proof of address
- Employee details
- Activate your employer profile
- Start submitting UIF monthly
2. What Is COIDA?
COIDA (Compensation for Occupational Injuries and Diseases Act) protects employees if they are:
- Injured on duty
- Disabled from a workplace accident
- Exposed to a work-related disease
- Killed on duty (benefits go to dependents)
This fund covers medical bills, compensation, and rehabilitation so employees cannot sue the employer directly.
Who must register for COIDA?
✔ Any business with employees
✔ Even one employee requires registration
✔ Required for tenders, construction jobs, and sub-contracting
Not required for:
❌ Sole proprietors with NO employees
❌ Independent contractors
How COIDA Works
Every year the business must:
- Submit a Return of Earnings (ROE)
- Pay an assessment fee (based on payroll + industry risk)
- Receive a Letter of Good Standing (LOGS)
The LOGS proves you are compliant — essential for business partnerships.
How to Register for COIDA
- Go to: compensation.dpme.gov.za
- Create an employer account
- Upload:
- Company registration docs
- Director ID
- Proof of address
- Payroll details
- Nature of business
- Wait for approval
- Submit Return of Earnings
- Pay the assessment
- Download your Letter of Good Standing
UIF vs COIDA — Simple Comparison
| Topic | UIF | COIDA |
|---|---|---|
| Protects unemployed workers | ✔ Yes | ✖ No |
| Covers workplace injuries | ✖ No | ✔ Yes |
| Needed for tenders | ✖ Sometimes | ✔ Always |
| Monthly payment | ✔ Yes (via SARS) | ✖ No (yearly) |
| Mandatory for employers | ✔ Yes | ✔ Yes |
Consequences of Not Registering
If you hire staff without UIF/COIDA compliance, you risk:
❌ Penalties
❌ Backdated payments
❌ Interest
❌ Legal action
❌ Liability for workplace injuries
❌ Losing tender opportunities
Worst case:
An injured employee can sue you directly if you don’t have COIDA.
Final Thoughts
UIF protects your employees.
COIDA protects both your employees and your business.
If you’re hiring staff or planning to grow your team, becoming compliant early saves you time, money, and legal risks.
And if you need help registering for UIF, COIDA, PAYE, or CIPC compliance — Creative Bookkeepers can do it all for you.
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