How Much Is UIF Contribution In south Africa

What is UIF Contribution?

Contributions Payable The contribution that employers must deduct from a worker’s pay is 1% of the worker’s total earnings, excluding commission. In addition to the 1% deducted from the worker, the employer also contributes 1% for every worker that they employ. The total contribution paid to the UIF is therefore 2%.

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How Much Is UIF Contribution In south Africa

The amount of the contribution due by an employee must be 1% of the remuneration paid by the employer to the employee. The employer must pay a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer) within the prescribed period.

How is UIF payout calculated in South Africa?

To work out this claim, you divide the number of days you have been employed by 5. Take the 33 and multiply it by your daily remuneration, which is R164. 38. You will get R7,232.72 as your claim.

How much is UIF contribution per month?

Every month an employer will deduct 1% of your gross salary and contribute it to the UIF. The employer will also contribute a further 1% to the fund. This money accumulates and should you need UIF benefits, you can claim them from the fund.

What happens if an employer does not pay UIF?

Non-payment of UIF is an offence and the UIF will levy a 10% penalty on all the unpaid back contributions, and the finance committee at UIF will also calculate interest owing. An employer who has not deducted and paid UIF can calculate the amount owing and back pay the contributions.

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