The Minister of Finance has issued an official notice to increase the monthly maximum remuneration for Unemployment Insurance Fund (UIF) contributions

The previous threshold was R14 872.00 per month.

This increase will only affect the employee and employer contributions where the employee currently earns between the previous maximum threshold and the new threshold (between R14 872.00 and R17 712.00 per month).
Under the UICA, employers and employees must contribute 1% of the remuneration paid to the employee to the UIF.
When the increase was originally announced, the effective date was 1 March 2021.  The effective date has been postponed, and the Minister of Finance announced by notice in the Government Gazetted on Friday, 28 May 2021, that the new effective date is 1 June 2021.
In summary:
  • This increase is applicable to remuneration paid or payable by an employer to an employee during any month from 1 June 2021.
  • The previous limit of R 14 872 per month was therefore only applicable to remuneration paid or payable by an employer to an employee for any month up to 31 May 2021.
All employers and payroll providers are requested to immediately implement the increased remuneration amount to ensure that the unemployment insurance contributions for June 2021 is correctly determined and paid not later than 7 July 2021.

Any employee, including a domestic worker, who works for you for more than 24 hours per month must be registered with the Unemployment Insurance Fund (UIF).

View the Government Gazette here: Unemployment Insurance Contribution limit