Last Updated on September 21, 2023 by ufiling
UIF (Unemployment Insurance Fund) is a social security fund in South Africa that provides short-term relief to workers who become unemployed, as well as maternity and adoption benefits. The calculation of UIF contributions is based on an employee’s remuneration, which includes the employee’s basic salary as well as any other regular payments that are made to the employee, such as allowances, commissions, or certain fringe benefits.
In South Africa, both employers and employees contribute to the UIF. The employee’s contribution is a fixed percentage (currently 1%) of their remuneration, subject to a maximum remuneration threshold. The employer’s contribution is also a fixed percentage (currently 1%) of the employee’s remuneration, but it is not subject to a maximum threshold.
So, while UIF contributions are calculated based on an employee’s remuneration, which includes the basic salary, it also takes into account other regular payments made to the employee.