Two Separate Laws, Two Separate Obligations
Many South African domestic employers assume that registering for UIF covers all their employee insurance obligations. This is incorrect. UIF and COID are two entirely separate pieces of legislation, administered by different government departments, covering different risks and requiring different registrations and submissions. You can be fully compliant with UIF and completely non-compliant with COID. Both are compulsory.
What UIF Covers
The Unemployment Insurance Fund covers your domestic worker for income replacement when they cannot work due to circumstances unrelated to a workplace incident: unemployment after retrenchment or dismissal, illness preventing them from working for more than 14 days, maternity leave, adoption leave, and death benefits for dependants. UIF is funded by monthly contributions of 1% each from employer and employee. Administered by the Department of Employment and Labour.
What COID Covers
The Compensation for Occupational Injuries and Diseases Fund covers your domestic worker specifically for injuries or diseases that arise from their work in your home — injuries sustained while performing duties, occupational diseases, medical costs, rehabilitation and income replacement, and death benefits. COID is funded by an annual assessment fee paid by the employer only. The employee makes no contribution. Also administered by the Department of Employment and Labour but a separate registration and submission process.
The Key Practical Differences
- UIF: covers non-work-related income loss | both employer and employee pay 1% each | monthly contributions and monthly UI-19 declaration | applicable to domestic workers since 1 April 2003
- COID: covers work-related injuries and diseases | employer only pays | annual assessment fee and annual Return of Earnings | applicable to domestic workers since 10 March 2021
Both Are Required — No Exceptions
If your domestic worker works 24 or more hours per month for you, both UIF and COID registration are compulsory. Not sure which registrations you have? Use MyHelper Submit's free compliance check at myhelpersubmit.co.za. Our once-off R399 registration service covers both, and our R249 monthly payroll plan keeps you compliant with both going forward.
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