Monthly and annual UIF for employee and employer, capped at the ceiling.
Total UIF per month
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Employee / mo
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Employer / mo
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Employee / year
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Worked example
Take a monthly gross remuneration of R25,000. UIF is 1 percent of remuneration, but only up to the monthly ceiling of R17,712, so the contribution is capped. One percent of the full R25,000 would be R250, but because pay sits above the ceiling the contribution is calculated on R17,712 instead, which is R177 a month. Your employer matches the same R177, so R354 in total goes to the fund each month. Over a year your own share comes to about R2,125. Anyone earning above the ceiling pays this same fixed maximum, so a salary rise from R25,000 to R30,000 does not change the UIF deducted at all.
Step
Amount
Gross remuneration
R25,000
Capped at the monthly ceiling
R17,712
Employee 1%
R177
Employer 1%
R177
Total to the fund per month
R354
How it is calculated
UIF, the Unemployment Insurance Fund, is a payroll contribution split evenly between employee and employer. Each pays 1 percent of the worker's monthly remuneration, so 2 percent reaches the fund in total. The contribution is not open-ended: remuneration is counted only up to a monthly ceiling, currently R17,712, so the most either party pays is 1 percent of that, about R177 a month. The employer deducts your share from your pay, adds its own matching share, and pays both over to SARS together with PAYE and any Skills Development Levy. The annual figures are simply the monthly amounts times twelve. UIF funds benefits for unemployment, illness, maternity and adoption leave, and certain dependants, which is why it is compulsory for almost all employees even though the rand amounts are small.
Frequently asked questions
How much UIF is deducted from my salary?
UIF is 1% of your remuneration deducted from your pay, with your employer matching another 1%, so 2% in total goes to the fund. Contributions are capped because remuneration above the monthly ceiling does not attract UIF, so high earners pay a fixed maximum each month.
What is the UIF monthly ceiling in South Africa?
The monthly remuneration ceiling for UIF purposes is R17,712. Any portion of your earnings above this figure does not attract UIF at all, so the maximum employee contribution is roughly R177 a month and the employer matches the same. This ceiling is set by the Department of Employment and Labour and is updated periodically.
Who is exempt from paying UIF in South Africa?
UIF is compulsory for most employees, but certain categories are excluded. These include workers employed for fewer than 24 hours a month, learners under a learnership agreement, public servants covered by the Government Employees Pension Fund, and workers who are not South African residents and are employed outside the country. Independent contractors are also excluded because they do not receive remuneration from an employer.
Can I claim UIF if I become ill and cannot work?
Yes. UIF covers more than unemployment. If you are unable to work due to illness and your employer does not pay you during that period, you may claim an illness benefit from the fund for up to 365 days, subject to the benefit credit you have accumulated. The benefit is calculated as a sliding scale of your remuneration, capped at the monthly ceiling, so your contribution history directly affects how much you can claim.