UIF (Unemployment Insurance Fund) contributions are calculated based on your gross salary, which includes all taxable income and benefits, such as bonuses and overtime pay. The UIF contribution is deducted from your gross salary before any other deductions such as tax, medical aid, or pension contributions.
However, when it comes to calculating your UIF payout, it is based on your basic salary, which is your gross salary minus any deductions, such as tax, medical aid, or pension contributions. The basic salary is used to determine your daily benefit amount, which is then multiplied by the number of days you are eligible for benefits to calculate your UIF payout.
It’s important to note that the UIF contribution rate is currently set at 1% of your gross salary, with an additional 1% contributed by your employer, resulting in a total contribution of 2% of your gross salary.