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%.
How is UIF deductions calculated?
UIF is calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer.
What does UIF mean on a payslip?
Unemployment Insurance Fund
UIF – This stands for “Unemployment Insurance Fund” and is another deduction from your salary that is paid by your employer on a monthly basis. All employees, as well as their employers, are liable for these contributions.
Is UIF compulsory?
The Unemployment Insurance Fund (UIF) was established to provide workers for short term financial relief to contributors of the fund. If you have been employed for more than 24 hours per month, you are required by law to register with the UIF. It is therefore compulsory for you to make contributions to the fund