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UIF – Unemployment Insurance Fund

UIF or Unemployment Insurance Fund payments are compulsory for all employees. Even for domestic workers who were incorporated into this scheme from April 2003.

Unemployment Insurance Fund is calculated on the Taxable earnings of an employee.

Commission earnings do not attract  UIF. If a salesman earns a basic salary plus commission, he will then only pay the UIF on the basic salary.

UIF cannot be claimed on a monthly pension or a disability grant from the state.

If a contributor resigns from a position, UIF will not be paid (unless it is constructive dismissal)

Unemployment Insurance Fund benefits include:

  • Illness
  • Maternity
  • Adoption
  • Dependants
  • Unemployment

With effect 1st July 2021 the UIF threshold/ earnings limit R 17 712 per month  – the employee pays 1% and the employer 1%.