TSS Payroll
Real Example

UIF Calculation Example

UIF is 1% of remuneration from the employee, matched by 1% from the employer — but it's capped once you cross the monthly earnings ceiling of R17,712. Here's how that plays out at different salaries.

Example 1: R10,000/month (below the ceiling)

  • Employee UIF: 1% × R10,000 = R100.00
  • Employer UIF: 1% × R10,000 = R100.00
  • Total UIF paid to SARS: R200.00

Example 2: R17,712/month (exactly at the ceiling)

  • Employee UIF: 1% × R17,712 = R177.12 (the maximum)
  • Employer UIF: 1% × R17,712 = R177.12
  • Total UIF paid to SARS: R354.24

Example 3: R35,000/month (above the ceiling)

Even though the salary is double the ceiling, UIF is still calculated on R17,712 only — not the full R35,000.

  • Employee UIF: capped at R177.12
  • Employer UIF: capped at R177.12
  • Total UIF paid to SARS: R354.24 — same as Example 2

Why the ceiling matters

Every employee earning R17,712 or more per month contributes the same maximum R177.12 each side — the ceiling stops UIF scaling further with higher salaries. See our UIF Calculator to check any salary instantly, or our full UIF guide for registration and payment rules.

People Also Ask

Is UIF calculated on gross or net salary?

Gross remuneration, before PAYE and other deductions.

Does the employer pay more UIF than the employee?

No — both employee and employer contribute the same 1% each, up to the same ceiling.

Does the UIF ceiling ever change?

It can — SARS reviews the ceiling periodically, so it's worth checking the current figure rather than assuming it's fixed forever.

Related Resources

No manual capping

UIF calculated and capped automatically

TSS Payroll applies the correct UIF ceiling for every employee, every payroll run.

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