/ 26 September 2007

Don’t confuse domestic workers’ pension and UIF

The recently launched pension fund and funeral cover for domestic workers should not be confused with the benefits offered by the Unemployment Insurance Fund (UIF), the Department of Labour said on Wednesday.

Spokesperson Kgomotso Sebetso said in a statement that the department has welcomed the establishment of a pension fund for domestic workers, but stressed that it is a private initiative while the UIF is a public fund that is compulsory.

”Domestic employers continue to be obliged to register the domestic workers and to contribute to the UIF every month,” he said.

More than 630 000 domestic workers have been registered with the UIF by more than 679 000 employers, he said.

Of the more than R213-million collected from domestic employers since the extension of social security to the domestic sector in April 2003, more than R100-million was paid out in benefit claims to more than 87 000 workers from this sector.

For a 2% monthly UIF contribution, domestic workers enjoy coverage for temporary job losses as a result of going on maternity leave, sick leave, adoption leave or unemployment.

Families of domestic workers, including spouses and children, can also claim for death benefits as a result of the death of the main contributor.

The minimum wage for domestic workers currently stand at R1 066,90 and R865,54 per month in urban and rural areas respectively. — Sapa