Do you want to contribute to the UIF but aren’t sure about the threshold? The Unemployment Insurance Fund (UIF) has a limit for every month. Employees cannot pay more than the limit.
What is The Required Payment Amount For UIF?
UIF payments can be made by South African residents and non-residents. The South African Revenue System (SARS) is paid monthly at the rate of 2%. Both, the employees and the employee contribute equally to the fund every month i.e., 1%.
You can calculate your UIF contributions easily here.
Payment shall be made within the prescribed period. These are some things that have been clear since the day the Unemployment Act was introduced. The confusion arises because the UIF threshold changes now and then.
The UIF threshold for the year 2023-2024 is R 17,712 per month and R 212 544 annually. Previously, the UIF limit was R 14 872 per month. The threshold was increased in 2021 and is being used to date.
According to the UIF ceiling limit, the total monthly UIF payment is R 354.24. The employer and the employee pay 1% of R 17 712 which makes R 177. It is important to note that this cap of R 177 is for one salary only.
Employees who are working with more than one employer and paying the UIF get double the amount. They will receive two benefit payments when in need. Hence, paying for the unemployment insurance fund after getting associated with different companies will be useful over the years.
The increase in the Unemployment Insurance Fund is a great approach. The higher the contribution, the more money you’ll get when in need.