UIF Contributions are calculated at 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer.
Effective 1 June 2021, the contribution ceiling has increased. From this date employers need to subtract 1% of an employee’s basic salary, to a maximum of R177.12 per month (up from R148.72), for UIF payment. Employers are still expected to match the amount deducted from the employee.
There has been no change to the maximum salary for benefit calculation which remains at R17 712 per month.
Cova Advisory