Two Different Funds, Two Different Legal Requirements
South African domestic employers are legally required to comply with two separate government funds — the Unemployment Insurance Fund (UIF) and the Compensation Fund (COID). Many employers confuse the two, assume one covers the other, or believe that registering for UIF means they are fully compliant. They are not. UIF and COID are completely separate legal obligations under different legislation, administered by different government bodies, covering different risks, and with different registration processes and payment structures. Both are compulsory. Failure to comply with either carries serious financial and legal consequences.
What UIF Is and What It Covers
The Unemployment Insurance Fund is established under the Unemployment Insurance Act (Act 63 of 2001) and the Unemployment Insurance Contributions Act (Act 4 of 2002). UIF provides short-term financial relief to workers who lose their income due to unemployment, illness, maternity, adoption leave or the death of a contributing worker's dependant. When a domestic worker is retrenched, resigns, or is dismissed and is unable to work, they can claim from UIF for a limited period based on their contribution history. UIF does not cover workplace injuries — that is COID's function entirely.
What COID Is and What It Covers
The Compensation Fund is established under the Compensation for Occupational Injuries and Diseases Act (Act 130 of 1993), commonly known as COIDA. COID covers workers who are injured at work or who contract a disease as a result of their work. For domestic workers, this includes falls, burns, equipment injuries, repetitive strain injuries and occupational diseases. The Fund pays for medical treatment, covers lost income during recovery, and provides disability and death benefits. COID does not provide any form of unemployment cover — that is UIF's function entirely.
Key Differences Between UIF and COID
The following table summarises the key differences between UIF and COID for domestic employers:
UIF: Covers unemployment, illness, maternity and death of a contributor. Contribution is 1% from employer plus 1% from employee, totalling 2% of gross monthly wage. Payable by the 7th of each month. Administered by the Department of Employment and Labour via uFiling. Applies to workers employed more than 24 hours per month.
COID: Covers workplace injuries and occupational diseases only. Contribution is an annual assessment fee of 1.04% of total annual earnings, minimum R560. Payable annually after ROE submission. Administered by the Compensation Fund. Applies to all domestic workers regardless of hours worked.
Who Must Register for Each
UIF registration is required for every domestic employer whose worker is employed for more than 24 hours per month. A worker who cleans your home for six hours every Saturday — approximately 26 hours per month — triggers UIF registration. COID registration is required for every domestic employer regardless of hours worked. Even a worker employed for four hours once a week must be covered by COID. There is no minimum hours threshold for COID.
How to Register for Each
To register for UIF, visit www.ufiling.co.za or email domestics@uif.gov.za. You will need your identity document and your domestic worker's identity document and banking details. Once registered, you submit monthly UI-19 declarations and pay contributions by the 7th of each month. To register for COID, complete a CF-1E form and email it to RegistrationCF@labour.gov.za with copies of both identity documents. Once registered, you submit an annual Return of Earnings between 1 April and 31 May each year and pay your annual assessment fee. MyHelper handles both registrations as part of the once-off R399 registration service.
What Happens If You Only Register for One
Registering for UIF but not COID leaves you personally liable for all costs arising from a domestic workplace injury. Your worker can sue you in civil court for medical expenses, lost income, disability compensation and potentially a lifetime pension. Registering for COID but not UIF means your worker cannot claim unemployment benefits when they need them, and you face backdated contribution liability, a 10% penalty and interest when the Department of Employment and Labour discovers the non-compliance. Both registrations are required. Neither substitutes for the other.
Frequently Asked Questions
If I pay UIF every month am I also covered for COID?
No. UIF and COID are completely separate. Paying UIF contributions provides no COID coverage whatsoever. You must register separately with the Compensation Fund for COID cover to apply.
Is COID more important than UIF?
Both are equally important legal requirements. However, the financial consequences of not having COID in the event of a serious workplace injury — personal liability with no cap — are potentially more immediately catastrophic than UIF non-compliance. Both must be in place.
Can MyHelper register me for both UIF and COID?
Yes. MyHelper handles both UIF and COID registration as part of the once-off R399 registration service. Monthly UIF submissions and annual COID Return of Earnings submissions are included in the R249 per month subscription.
How long does registration take?
UIF registration via uFiling typically takes 3 to 5 business days. COID registration via the Compensation Fund typically takes 2 to 4 weeks. MyHelper manages the entire process and follows up with the relevant departments on your behalf.
Get both UIF and COID sorted in one step. MyHelper handles all registrations, monthly UIF submissions and annual COID returns. R399 once-off plus R249 per month. Get fully compliant today →
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