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  • Writer's pictureKarbonPay

South Africa's UIF Increase

Updated: Sep 20, 2021

On May 28th, 2021 it was announced that the Unemployment Insurance Fund (UIF) contribution ceiling has been raised from R14,872 to R17,712.

The UIF contribution is submitted by both employee and employer (matched) at a total of 1% of remuneration. This change has not affected the percentage owed, but simply the threshhold at which the Rand amount would be capped.

Under the current ceiling of R14,872, the maximum UIF contribution for employees and employer wis R148.72 each. Under the new limit, the maximum will be R177.12.

This change is effective is of June 1st, 2021, despite initial plans to make the implement the change from 1st March 2021.

As always, KarbonPay has updated our system to reflect the new regulations and so no action is required from you. Your payroll will continue to comply with South African regulations.


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