The Unemployment Insurance Fund (UIF) contribution is calculated as one percent of an employee's UIF remuneration, subject to the monthly UIF limit of R177.12.
UIF remuneration includes most taxable earnings and benefits, such as:
Salary
Bonuses
Overtime
Allowances
Taxable fringe benefits
Employer retirement fund contributions
Some taxable earnings, such as commission, are excluded from UIF remuneration.
If the calculated UIF amount is below the monthly limit, the same amount applies to both the employee deduction and employer contribution.
For more information about UIF requirements, see the Guide for Employers in respect of Unemployment Insurance Fund on the SARS website.
View a UIF calculation example
Basic salary: R6 000
Overtime: R820
Commission: R4 000
Medical aid company contribution: R2 000
Medical aid employee deduction: R1 000
Pension fund company contribution: R700
UIF remuneration is calculated as follows:
R6 000 + R820 + R2 000 + R700 = R9 520
UIF contribution:
R9 520 × 1% = R95.20
Because R95.20 is below the monthly limit of R177.12, the:
Employee UIF deduction is R95.20
Employer UIF contribution is R95.20