Unemployment Insurance Fund (UIF) | Limit Increase
What is the Unemployment Insurance Fund (UIF)?
When workers become unemployed or are unable to work because of maternity, adoption leave, or illness then the Unemployment Insurance Fund (UIF) provides short term relief.
Who is UIF for?
All employees are responsible for contributions to the Unemployment Insurance Fund (UIF) as well as their employers.
The following employees are excluded from contributing to the UIF:
- The employee is employed for less than 24 hours a month
- The employee receives remuneration under a contract of employment as contemplated in section 18(2) of the Skills Development Act, 1998 (Act No.97 of 1998)
- The employee is employed as an officer or employee in the national or provincial sphere of Government
- The employee Entered the Republic for the purpose of carrying out a contract of service, apprenticeship or learnership within the Republic. If upon termination, the employer is required by law or by the contract of service, apprenticeship or learnership, or by any other agreement or undertaking, to send home that person, or if that person needs to leave the Republic
- The employee is the President, Deputy President, a Minister, Deputy Minister, a member of the National Assembly, a permanent delegate to the National Council of Provinces, a Premier, a member of an Executive Council or a member of a provincial legislature or
- Is a member of a municipal council, a traditional leader, a member of a provincial House of Traditional Leaders and a member of the Council of Traditional Leaders.
How much do you need to pay to UIF?
- The amount of the contribution due by an employee, must be 1% of the remuneration paid by the employer to the employee.
- The employer must pay a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer) within the prescribed period.
- The contribution shall not exceed:
- With effect from 1 October 2012 – R 14 872 (R148.72) per month (R 178 464 annually)
- With effect from 1 June 2021 – R 17 712 (R177.12) per month (R 212 544 annually).