Frequently asked questions
UIF, COID, payslips, contracts and the minimum wage, explained in plain language. Find your answer below, or ask a PayNest specialist directly.
Updated for 2026
Plain-language answers
Free, no-obligation advice
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Twenty-one answers to the questions South African employers ask us most, grouped by topic. Tap a topic to jump straight to it.
Who you must register, when, and what to do if you are behind.
5 questions
See answers →
Injury-on-duty cover, what it costs and why it protects you.
3 questions
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Monthly payslips, written contracts and the 2026 minimum wage.
3 questions
See answers →
Farm payroll rules, and our white-label service for firms.
3 questions
See answers →
Pricing, getting started, WhatsApp payslips and data security.
7 questions
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Ask a PayNest specialist. We reply within one business day, Monday to Friday, 8am to 5pm.
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01
UIF
The fund that supports your worker if they lose their job, go on maternity leave or fall ill. Most of our clients start here.
2%
of your worker’s pay goes to UIF every month: 1% from you and 1% from them.
Yes. It is a legal obligation, not a choice. If your domestic worker works 24 hours or more a month for you, you must register as an employer with the Unemployment Insurance Fund, declare your worker and pay contributions every month. Failing to register is an offence, and you can be held liable for arrear contributions, penalties and interest.
You are only responsible for the work they do for you. If they work 24 hours or more a month for you, you must register them and pay UIF on what you pay them. Their other employer has the same duty for the work done there.
Anyone you employ in or around your home for 24 hours or more a month. That includes housekeepers, nannies, au pairs, caregivers, home nurses, gardeners, domestic drivers, butlers and housemen.
Register them now and backdate UIF and COID to the date they started working for you. Penalties and interest apply to the arrears, and these must be paid before you are compliant. PayNest works out exactly what is owed and handles the submissions for you.
Your liability does not end when they leave. If you never registered them or paid UIF or COID, you still need to register, pay what is outstanding and bring your records up to date. We can help you close it off properly.
02
COID
Cover for work injuries and illness. It protects your worker, and it protects you from paying a claim yourself.
R560
minimum yearly COID assessment for domestic employers, from 1 March 2026.
COIDA is the Compensation for Occupational Injuries and Diseases Act. It compensates employees who are injured, fall ill or die because of their work. It gives your worker financial support, and it protects you from covering those costs yourself, as long as you are registered and up to date.
Yes. Domestic workers have been covered by COIDA since 2020. You must register as an employer with the Compensation Fund and pay an annual assessment. If you are not registered and your worker is injured at work, you can be held liable for the cost of the claim.
Your yearly assessment is your worker’s total annual earnings multiplied by the risk rate for your industry. For domestic workers the rate is about 1.04%. From 1 March 2026, earnings are capped at R668,000 per employee per year, and the minimum assessment is R560 for domestic employers and R1,621 for other employers.
03
Employment
The paperwork a labour inspector asks for first, and the pay rates you must meet.
R30.23
national minimum wage per hour from 1 March 2026. It applies to domestic workers too.
Yes. The law requires you to give your domestic worker a written payslip every time you pay them, showing their pay, hours worked and deductions such as UIF. Without payslips you are non-compliant and can be fined. PayNest sends payslips straight to your worker on WhatsApp.
Yes. Sectoral Determination 7 requires you to give your domestic worker written particulars of employment by their first day of work, in line with the Basic Conditions of Employment Act. Without one you are non-compliant and open to fines from labour inspectors. We draft compliant contracts for you.
From 1 March 2026 the national minimum wage is R30.23 per hour, and domestic workers must be paid at least this rate. PayNest tracks minimum wage changes every year and tells you when your pay rates need to change.
04
Sectors
Payroll rules that change with your industry, and support for the firms that advise employers.
White-label
payroll for accounting firms: your clients, your brand, our team behind the scenes.
Farm workers are covered by Sectoral Determination 13, which sets rules on working hours, leave, housing and deductions, and they are entitled to the national minimum wage. Farms also deal with seasonal labour, in-kind deductions for housing, meals or tools, and their own COID rate. We set up your payroll to handle all of it.
We work as a confidential, white-label payroll partner. We register your clients for UIF and COID, process their payroll, and deliver EMP201 monthly returns, EMP501 reconciliations and IRP5 files, ready for your submission process.
Accountants handle SARS and tax. UIF, COID, employment contracts, leave records and HR sit outside that work, and that is where most employers are exposed. PayNest covers those obligations and works alongside your accountant.
05
PayNest
Pricing, getting started and what to expect from us once you sign up.
R165
per employee per month for domestic payroll. Everything else is quoted after a free consultation.
Domestic payroll starts from R165 per employee per month, or R1,815 per employee a year if you pay annually (one month free). For domestic employers, farmers, small to medium businesses and standalone services, we give you a clear quote after a short, no-obligation consultation.
No. PayNest is month-to-month with no lock-in contract.
Within 24 hours of signing up, we set up your payroll and start your UIF and COID applications.
Yes. We retrieve your compliance status, work out what is missing, submit the backdated declarations or Returns of Earnings and deal with the Department of Employment and Labour and the Compensation Fund for you.
Payslips are sent straight to your employees on WhatsApp every payday, and copies are kept on record for you.
Yes. Payroll data is stored and processed on an encrypted cloud platform, and access is limited to you and your PayNest specialist. Your information is protected under POPIA.
One named PayNest specialist who knows your account. No call centre and no ticket numbers. Reach them on WhatsApp, phone or email, Monday to Friday, 8am to 5pm.
Still have a question?
Every household, farm and business is a little different. Tell us about yours and a PayNest specialist will tell you exactly what you need, and what you don’t.
These answers are general guidance based on South African labour law and the figures published for 2026. They are not legal advice for your specific situation. For advice on your circumstances, book a free consultation.
