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Automated payroll software simplifies UIF processes, ensures compliance

Johannesburg, 07 Feb 2012
Read time 3min 00sec

The Unemployment Insurance Fund (UIF) Act is important to both employers and employees, but like most legislation applying to employment, it can be complex and difficult for companies to administer and for employees to claim benefits. Automated payroll software systems simplify the processes and ensure fair treatment for both.

The UIF provides short-term relief, by means of paying benefits, should the employee be unemployed for a period of time.

The UIF provides benefits for unemployment, maternity, illness, adoption and death based on specific formulas to determine the daily rate of remuneration to any person who has contributed to the UIF and is now legitimately claiming benefits.

“To add to the complexity, the calculations vary, depending on an employee's remuneration factor and whether the employee was paid monthly, weekly or fortnightly,” says Grant Lloyd, managing director of payroll and HR software specialist Softline Pastel Payroll, part of the Softline and Sage Group.

“An automated payroll software system will provide a complete electronic record of employee remuneration and of their historical individual contributions to the UIF, as well as produce the appropriate forms for completion and submission to the Department of Labour electronically.”

Lloyd adds that the UIF is introducing new technology to simplify and de-mystify the claiming of UIF benefits. Among the measures being taken are the introduction of a “virtual unemployment portal”, called the UIF Virtual Office, that will streamline the workloads of UIF Labour Centres. Companies will be able to upload information, such as employee engagements, terminations, remuneration and details to the Fund.

“There are 33 000 rules applied within the UIF system, but the UIF now has a framework called Siyaya in place to streamline the handling and administration of the benefits relating to many thousands of claims. Just the management of the details of more than eight million employees in the system is an enormous task.

“With a large volume of UIF applications, automated payroll systems play a vital role by ensuring that all of the required information is presented with any claim.

“Employees can now be registered online and submit claims electronically, all of which helps to ensure that the unemployed receive their benefits in the shortest possible time. The UIF is conscious of security and confidentiality in its operations.”

Pastel Partner Payroll software automatically updates new limits implemented by the UIF Act that form the basis of UIF calculations. It also offers pre-set transactions and verification of UIF income. The software's UIF electronic declaration report automatically populates the required fields and ensures the UIF report is run every month, saving the detail in a separate folder for safekeeping and company records. This electronic declaration will automatically be e-mailed to the Department of Labour using Microsoft Outlook.

Should any changes be made to UIF limits, Softline Pastel Payroll automatically releases a legislative update for the software, ensuring that the new calculation totals are updated. If Pastel Payroll customers have an active Internet connection, installing new UIF updates will be quick and simple. By making use of Frictionless Updates technology, the payroll software will always be processed using the latest version with up-to-date legislative changes. Pastel Payroll customers no longer need to visit a Web site to download and install updates manually, as the software does it all on behalf of the customer.

Softline Pastel Payroll

Pastel Payroll, part of Softline and The Sage Group, is one of the leading developers of payroll and HR software solutions and services in South Africa as well as the rest of the African continent. Skills, experience and innovation in this field accumulated over many years in business confirm Pastel Payroll's leading position in the SME market. Pastel Payroll & HR provides a wide range of software solutions from start-up to medium as well as larger enterprises. It offers easy-to-use, feature-rich and flexible payroll and HR software solutions to ensure businesses are kept up to date and fully compliant with changing legislative requirements - its software does it all for you.


Softline is a leading provider of business software and related services. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the business software industry. While Softline's heritage is in the SME market, the group also offers expertise and solutions that meet the needs of specific industries and larger organisations. In 2003, Softline was acquired by The Sage Group, a FTSE 100 company. Softline has a solid track record offering customers local expertise backed by the global Sage brand. The group delivers quality software solutions to make customers' business lives easier.

Sage Group

The Sage Group is a leading global supplier of business management software and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has more than six million customers and more than 13 500 employees worldwide. It operates in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information, please visit

Editorial contacts
Copywise Dave McDermott (+27) 11 478 2055
Sage HR & Payroll Sumay Dippenaar (+27) 11 304 4190
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