Please advise if foreigners without permits can contribute to UIF and claim UIF.
Author: The Payroll Authors Group of South Africa
Important:
This answer is based on tax law year ending 28 February 2021.
Answer:
The Unemployment Insurance Contribution Act does not differentiate between foreigners or RSA citizens. It however, define an employee which is any natural person receiving any remuneration.
This means that although they do not comply with other RSA legislation (permit, etc.) they are still an employee as defined and should contribute.
However, when claiming for UIF, certain validation will be done and the permit is a required document, which means that if they do not comply with the provisions of the Unemployment Insurance Act (not the Contributions Act), they will not be able to claim.
You must treat the different Acts separately.