The UIF remuneration ceiling is the maximum amount of monthly remuneration that UIF is calculated on. Contributions are 1% from the employee and 1% from the employer, but only up to this cap.
What it means
UIF is 2% in total (1% each side) of an employee's remuneration, but the law caps the remuneration it applies to at R17 712 a month. Above that, the contribution stops increasing, so a high earner and someone on the ceiling pay the same maximum UIF. The cap keeps the contribution proportional to the benefit the fund pays out.
Where it fits in
Payroll applies the 1% rate to the lower of actual remuneration and the ceiling each period. For weekly and fortnightly payrolls the monthly ceiling is converted to the equivalent for the period. The contribution is declared on the EMP201 and the employees are reported on the UIF declaration.
Key rules
- Caps the remuneration UIF is calculated on at R17 712 per month.
- Contribution is 1% employee plus 1% employer, applied up to the cap.
- The maximum monthly UIF per side is 1% of the ceiling.
- The monthly cap is pro-rated for weekly and fortnightly pay periods.
