What is the UIF threshold?
What is the UIF threshold?
Please note: As from 1 June 2021, the maximum earnings ceiling 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.
When did the UIF limit increase?
1 June 2021
The new UIF contribution ceiling has come into effect on 1 June 2021. Employees will now be required to contribute 1% of their remuneration to the UIF up to the new maximum threshold of R17 712 per month, being R177.
Has the new UIF threshold been gazetted?
The effective date has been postponed, and the Minister of Finance announced by notice in the Government Gazetted on Friday, 28 May 2021, that the new effective date is 1 June 2021. In summary: This increase is applicable to remuneration paid or payable by an employer to an employee during any month from 1 June 2021.
Is UIF calculated on gross or basic salary?
The calculation of UIF is not a simple matter of applying 1% to the gross pay of an employee. The calculation of the amount of income that is subject to UIF, is set out in the UIF Act and the Income Tax Act.
How do they calculate UIF?
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.
How is PAYE calculated?
- Projected total remuneration = Annual equivalent of regular income + irregular income = R120,000 + R20,000 = R140,000.
- Tax calculated on R140,000 as per tax tables = R11,133.
- PAYE payable on irregular income = Tax on total income – Tax on regular income = R11,133 – R7,533 = R3,600.
How much is UIF monthly?
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.
Who is excluded from UIF?
All employees may claim from the UIF, except for: employees that work less than 24 hours a month; certain members of State; employees that do not comply with the law; or.
How do you calculate UIF?
How much does UIF take from your salary?
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 you calculate UIF payments?
Who is entitled to UIF?
Who is eligible to claim from the UIF? All workers who contributed to the UIF can claim if they have been let go, retrenched, if their contract has expired, or if their employer is bankrupt.
How is the UIF contribution calculated?
The employee contributes 1% towards UIF and the employer contributes another 1% on behalf of the employee, resulting in a total UIF contribution of 2% being payable. This 2% is however not payable on the total gross salaries, but calculated based on a capped amount.
What is the unemployment insurance fund (UIF)?
The Unemployment Insurance Fund (UIF): Established i.t.o Section 4(1) of the UI Act, 2001 (Act 63 of 2001), as amended. The Act empowers the UIF to register all employers and employees in South Africa.
What is the maximum amount of uuif in South Africa?
UIF Limit – R14 872 per month as from 1 October 2012. OID Limit – R458 520 per annum for 2019/2020. BCEA Earnings Threshold – R205 433.30 per annum as from 1 July 2014.
Is 2% UIF payable on total gross salaries?
This 2% is however not payable on the total gross salaries, but calculated based on a capped amount. Based on the notice published in the Government Gazette no. 35715, dated 26 September 2012, the UIF earning limit increased from R149,736 to R178,464 p/annum and from R12,478 to R14,872 p/month.
