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Hiring your first employee

Updated · 3 min read

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In short

  • Register with the UIF, the Unemployment Insurance Fund, as soon as you employ someone [1].
  • Register with the Compensation Fund within 7 days of their first day [2].
  • Register with SARS for PAYE, Pay As You Earn, within 21 business days, unless no employee is liable for income tax [3].
  • Registered with SARS? Declare and pay by the 7th of every month [4].

From their first day

  1. Day one

    Unemployment Insurance Fund

    Register as an employer, then declare each employee [1].

  2. Within 7 days

    Compensation Fund

    Register. It covers injuries and diseases from work [2].

  3. Within 21 business days

    SARS

    Register for PAYE and UIF payments, unless no employee is liable for income tax [3], [5].

Counted from your first employee’s first day.

Who counts

For the Compensation Fund, casual and part-time staff count too [2].

Counts

  • Full-time, part-time, casual and temporary staff [2]
  • A director working for your company under a contract [2]

Doesn’t count

  • You, as a sole proprietor or partner [2]
  • For UIF, anyone working under 24 hours a month for you [5]

Every month

On R10,000 of monthly pay. Registered with SARS? Pay it with PAYE. If not, pay the UIF [5].
SARS monthly declaration (EMP201)
By the 7th
Last month’s PAYE and UIF. A weekend or public holiday? The business day before [4].
UIF declarations
Every change
New staff, pay changes and people leaving, on uFiling [1].

Through the year

SARS reconciliation (EMP501)
Twice a year
Interim and annual, with an IRP5 tax certificate for each employee [4].
Compensation Fund
Once a year
A return of earnings, then an assessment you pay. Never from their wages [2].

References

General guidance, not tax or legal advice.

  1. [1]Department of Employment and Labour, “Basic Guide to the Unemployment Insurance Fund (UIF),” Department of Employment and Labour. Accessed: Oct. 23, 2026. [Online]. Available: https://www.labour.gov.za/DocumentCenter/Publications/Unemployment%20Insurance%20Fund/Basic%20Guide%20to%20the%20Unemployment%20Insurance%20Fund%20(UIF).pdf (opens in a new tab)
  2. [2]Compensation Fund, “The Compensation Fund Service Booklet: Frequently Asked Questions,” Department of Employment and Labour. Accessed: Oct. 23, 2026. [Online]. Available: https://www.labour.gov.za/DocumentCenter/Publications/Compensation%20for%20Occupational%20Injuries%20and%20Diseases/COIDA_SERVICE_BOOK_VERSION_23.pdf (opens in a new tab)
  3. [3]South African Revenue Service, “Registering for Employees’ Tax [Pay-As-You-Earn (PAYE)],” SARS, Aug. 19, 2026. Accessed: Oct. 23, 2026. [Online]. Available: https://www.sars.gov.za/types-of-tax/pay-as-you-earn/registering/ (opens in a new tab)
  4. [4]South African Revenue Service, “Pay As You Earn,” SARS, Sep. 23, 2026. Accessed: Oct. 23, 2026. [Online]. Available: https://www.sars.gov.za/types-of-tax/pay-as-you-earn/ (opens in a new tab)
  5. [5]South African Revenue Service, “Unemployment Insurance Fund,” SARS, Aug. 19, 2026. Accessed: Oct. 23, 2026. [Online]. Available: https://www.sars.gov.za/types-of-tax/unemployment-insurance-fund/ (opens in a new tab)

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