UIF – Unemployment Insurance Fund

UIF or Unemployment Insurance Fund payments are compulsory for all employees. Even for domestic workers who were incorporated into this scheme from April 2003.

Unemployment Insurance Fund is calculated on the Taxable earnings of an employee.

Commission earnings do not attract  UIF. If a salesman earns a basic salary plus commission, he will then only pay the UIF on the basic salary.

UIF cannot be claimed on a monthly pension or a disability grant from the state.

If a contributor resigns from a position, UIF will not be paid (unless it is constructive dismissal)

Unemployment Insurance Fund benefits include:

  • Illness
  • Maternity
  • Adoption
  • Dependants
  • Unemployment

At present the earnings limit is R14,872 (effective 1 October 2012)  – the employee pays 1% and the employer 1% - anyone earning above the limit will only pay the maximum of R148.72 ( and the employer pays R148.72)

Need help with your Payroll? Contact Us now!