The UIF is Unemployment Insurance Fund Act, Purpose is to provide short-term relief for employees who become unemployed or unemployable due to:
Illness
Retrenchment
End of contract
Adoption and maternity leave
The UIF is contributions that are paid by both employee (deduction from the employee) & employer (cost for the employer)
The amount used in the calculation of UIF Contribution must not exceed the monthly UIF Limit of R 17,712.00 (annually 212,544.00)
Calculation as follows:
Gross remuneration (Capped to the maximum) = Taxable Earnings + Fringe Benefits
UIF employee's contribution = 1% of Gross remuneration (Capped to the maximum)
UIF employer's contribution = 1% of Gross remuneration (Capped to the maximum)
Fringe benefits taxable examples:
