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UIF capturing incorrect information results in non-compliance

21 Sep 2011

A recent study finds that minibus taxi, catering and domestic sectors employers were not contributing to the Unemployment Insurance Fund (UIF) because it was capturing incorrect information. In addition, many employers listed financial constraints and ignorance as reasons for not contributing to the UIF.

Labour department's UIF spokesman Muzi Mkhwanazi explained that non-compliance in the taxi industry happened because drivers were constantly changing employers. The informal nature of the industry was also to blame, with owners and drivers shifting the blame to one another. In addition, owners were unable to update their records and make monthly UIF declarations.

Managed by the labour department, the government uses the Unemployment Insurance Fund to address the hardship of unemployment, and both employers and employees are obliged to contribute. Overall, said Mkhwanazi, the study found that the public was satisfied with the services offered by the UIF.

Read the full article on www.citizen.co.za.