UIF

What you should know about the Unemployment Insurance Fund

There are a few exceptions to this requirement – mainly people who are employed temporarily and those who are employed by the national or provincial governments.

Employers are expected to deduct the contributions from their employees earnings, and failure to do so is an offence punishable with a fine or imprisonment or both.

The contribution you are expected to make to the UIF is equal to one percent of the  employee’s gross remuneration – that is, his/her salary before any deductions.

In addition to the one percent paid by an employee, an employer must contribute one percent – making a total contribution equal to two percent of an employee’s remuneration.

However, total contributions are calculated at two percent of employee’s gross earnings up to R12 478 a month. So the maximum an employee and employer can contribute is R249,56 a month.