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Should UIF be deducted from the salaries of foreign employees working in SA?

23 February 2015   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: I am responsible for the accounts of a school of teachers from Uganda, Zimbabwe and Ghana. I am not deducting UIF for them. I am only deducting tax as per the statutory tables and the owner of the school thinks I must not deduct even the PAYE. Can you deduct UIF from the salaries of foreign employees working in SA?

A: Section 4(1)(d) UIF Contributions Act 4 of 2002 does exclude certain foreign employees from contributing where they enter SA for a contract of service, apprenticeship or learnership of fixed duration and on termination of such service or learnership must return to their home country by law or per the contract. If there is no legal or contractual obligation on the employer to repatriate the employee to his home country on termination of the contract, then the exclusion will not apply and contributions would have to be paid.   

As to the claiming of benefits, the UIF Act does not specifically exclude non-residents in section 14 and the benefits seems to apply to all "contributors” in section 12 and 16 who comply with the provisions of the UIF Act. A "contributor” merely being defined in section 1 as a natural person, who is or was employed, to who the Act applies and who have made contributions. It is our view that exclusion can only be in terms of the prescribed requirements in section 16, however we know of no legislative prohibition for permanently employed foreign nationals who have a passport, relevant working permits and are UIF contributors to claim UIF benefits.  

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.



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