UIF Calculator South Africa

What is the UIF?

The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption and parental leave, or illness. It also provides relief to the dependants of a deceased contributor.

The unemployment insurance system in South Africa is governed by the Unemployment Insurance Act, 2001 and the Unemployment Insurance Contributions Act, 2002, which came into operation on 1 April 2002.

Who Must Contribute?

All employees and their employers are responsible for contributions to the UIF. However, an employee is excluded from contributing if they:

• Are employed for less than 24 hours a month
• Are employed as an officer or employee in the national or provincial sphere of Government
• Hold certain political or traditional leadership positions (President, Ministers, Members of Parliament, Premiers, etc.)

How Much Must You Pay?

Employee Contribution = 1% of Monthly Salary
Employer Contribution = 1% of Monthly Salary
Total UIF = 2% of Monthly Salary

The employee contributes 1% of their remuneration, and the employer matches this with another 1%, making a total contribution of 2%.

Earnings Ceiling

As from 1 June 2021, the maximum earnings ceiling is R17,712 per month (R212,544 annually). For employees who earn more than this amount, the contribution is calculated using the maximum earnings ceiling. The maximum contribution that can be deducted is R177.12 per month per party.

Max Monthly Contribution = R17,712 × 1% = R177.12 (per party)
Max Total Monthly = R177.12 × 2 = R354.24

When Must It Be Paid?

The employer must pay UIF contributions to SARS within seven days after the end of the month during which the amount was deducted. If the last day falls on a public holiday or weekend, payment must be made on the last business day before.

Payment is made by completing the Monthly Employer Declaration (EMP201) and can be submitted via eFiling, EFT, or at ABSA, Capitec, FNB, Nedbank, Standard Bank, or African Bank.

Source: SARS - Unemployment Insurance Fund

Disclaimer

This calculator is provided for informational and educational purposes only. While we strive for accuracy, we make no guarantees regarding the results. UIF rates and earnings ceilings may change. The calculations should not be used as a substitute for professional financial, legal, tax, or other advice. Always consult with a qualified professional or SARS for important decisions.