Should UIF be deducted from the salaries of foreign employees working in SA?
23 February 2015
Posted by: Author: SAIT Technical
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
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.