UIF Guide

How Much UIF Do I Pay?

UIF (Unemployment Insurance Fund) contributions are 1% of your monthly remuneration — deducted from your salary each month. Your employer pays an additional 1%, making the total contribution 2% of remuneration.

Quick Answer

Employee pays

Employer pays

R177.12

Max per party/month

The UIF Ceiling

UIF contributions are capped at a monthly remuneration ceiling of R17,712. This means:

Employees earning R17,712 or less pay 1% of their actual salary.
Employees earning above R17,712 pay a fixed R177.12/month — not more.
The employer always matches the employee contribution exactly.

UIF Contribution Examples

Monthly Salary	Employee UIF	Employer UIF	Total
R 5 000	R 50,00	R 50,00	R 100,00
R 10 000	R 100,00	R 100,00	R 200,00
R 15 000	R 150,00	R 150,00	R 300,00
R 17 712	R 177,12	R 177,12	R 354,24
R 25 000	R 177,12	R 177,12	R 354,24
R 50 000	R 177,12	R 177,12	R 354,24

Who is exempt from UIF?

Employees who work fewer than 24 hours per month for the employer
Independent contractors (not employees)
Learners in learnership agreements registered with a SETA
Foreign employees who are not SA residents (in some cases)

Frequently Asked Questions

Does UIF apply to bonuses?

Yes — if the bonus is remuneration paid to an employee, UIF applies up to the monthly ceiling. However, if the bonus takes the month's remuneration over R17,712, the contribution is still capped at R177.12.

What is the UIF used for?

UIF pays out unemployment benefits when employees become unemployed, go on maternity leave, adopt a child, become ill, or when a family member dies.

How do I pay UIF to SARS?

UIF is declared and paid monthly via the EMP201 return on SARS eFiling, together with PAYE and SDL.

Can I deduct UIF from an employee's final pay?

Yes. UIF should be deducted from any remuneration paid, including final pays — up to the ceiling.

Related Resources

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