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What is the maximum earnings ceiling for UIF?
R17 712 per month
3 August 2021 – As from 1 June 2021, the maximum earnings ceiling for the Unemployment Insurance Fund (UIF) is R17 712 per month or R212 544 annually. For employees who earn more than this amount, the contribution is calculated using the maximum earnings ceiling amount.
What is the UIF limit for 2020?
Therefore the maximum contribution which can be deducted, for employees who earn more than R17 712 per month, is R177,12 per month. Excess amounts shouldn’t be included as remuneration for the purposes of UIF contributions.
Has the UIF increased for 2021?
82. From 1 June 2021, the maximum monthly contributions move up to R177. 12. Employers and payroll administrators should immediately implement the increased UIF contribution ceiling.
Did UIF increase June 2021?
“There is an increase of monthly remuneration liable to UIF contributions from 1 June 2021. The Minister of Finance announced by notice in the Government Gazetted on Friday, 28 May 2021, that the contributions to the unemployment insurance fund must be determined on remuneration not exceeding R 17 712 per month.
Is UIF calculated on gross or net salary?
Every month an employer will deduct 1% of your gross salary and contribute it to the UIF. The employer will also contribute a further 1% to the fund. This money accumulates and should you need UIF benefits, you can claim from the fund.
What is the maximum UIF payment 2022?
The Minister of Finance increased the monthly maximum remuneration for the Unemployment Insurance Fund contributions to R17,712 from R14,872 monthly. This means that the monthly UIF contributions per respective employer would now be limited to R177. 12 per month, up from R148. 72 per month.
How is UIF amount calculated?
The UIF payout system makes payments in the percentage of the salary you earned while contributing to it. The highest amount that can be paid is 58% of what you earned per day. Workers who earned less than R12,478 will receive around 36-56% of their average salary for the four years they had been making the payments.
When did the UIF limit increase?
1 June 2021
Effective from 1 June 2021, the contribution limit for UIF has increased from R14 872.00 per month to R17 712.00 per month. You can find Government Gazette 44641 here.
Is UIF calculated on basic salary?
On what amount is UIF calculated?
The contribution that employers must deduct from a worker’s pay is 1% of the worker’s total earnings, excluding commission. In addition to the 1% deducted from the worker, the employer also contributes 1% for every worker that they employ. The total contribution paid to the UIF is therefore 2%.
How do they calculate UIF?
For example, if you are earning monthly, multiply your monthly salary by twelve and divide by 365. The UIF payout system makes payments in the percentage of your earned salary while contributing to it. The highest amount that can be paid is 58% of what you earn per day.
How much is UIF monthly?
How is UIF calculated 2021?
UIF is calculated as 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.
Is UIF calculated on gross or basic salary?
How do I calculate my UIF?
To work out this claim, you divide the number of days you have been employed by 5. Take the 33 and multiply it by your daily remuneration, which is R164. 38. You will get R7,232.72 as your claim.
What percentage is UIF of your salary?
Is UIF calculated on gross salary?
If you work for longer than 24 hours per month, by law, you are required to make contributions to the Unemployment Insurance Fund (UIF). Every month an employer will deduct 1% of your gross salary and contribute it to the UIF.
How is UIF payout calculated in South Africa?
What is the UIF contribution ceiling?
This only applies up to a certain threshold (UIF contribution ceiling), as determined by the Minister of Finance by notice in the Gazette. The Minister has now announced that the contributions must be determined on so much of an employee’s monthly remuneration as does not exceed R17,712.
What is the UIF contribution for South Africa?
UIF Contributions | Labour Guide. Employers must pay unemployment insurance contributions of 2% of the value of each worker’s pay per month. The employer and the worker each contribute 1%. Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African Revenue Services (SARS).
What is the new UIF contribution date?
A new notice has now been published confirming the new effective date as 1 June 2021. In terms of the Unemployment Insurance Contributions Act, 2002, both employers and employees must make monthly contributions to the UIF. The contributions must be equal to one percent of the employee’s monthly remuneration.
When do employers have to pay the 1% UIF?
Employers must pay the 1% they deducted from workers, together with the 1% they have contributed, to the UIF or SARS before the 7th of every month. Contributions due for January, must reach the UIF or SARS on or before 7 February. If the 7th day of a month is not a business day, employers must pay on or before the last business day before the 7th.