HRIFYUIF contributions: a guide for employers
How much UIF employers and employees pay in South Africa, the monthly ceiling, who is covered, and what to do when an employee leaves.
This guide explains contributions to the Unemployment Insurance Fund. It is general information, not tax or legal advice.
How much is paid
The employee pays 1% of their remuneration and the employer pays another 1%, so 2% goes to the fund in total. The employer deducts the employee’s share from their pay.
Contributions stop at a ceiling of R17,712 a month. An employee earning more than that pays R177.12 a month, and so does their employer.
You can see this on any salary with the PAYE calculator.
Who is covered
UIF covers most employees, including part-time staff. It does not cover someone who works fewer than 24 hours a month for an employer.
How it is paid
Most employers pay UIF to SARS each month on the EMP201. Employers who are not registered with SARS for PAYE or SDL pay it to the Unemployment Insurance Commissioner instead. You must also register your employees with the fund and keep their details up to date.
When an employee leaves
Give the employee a completed UI-19 form, because they need it to claim. The reason for leaving on the form must be accurate.
How HRify handles it
HRify calculates contributions with the ceiling and the correct exclusions, includes them in your EMP201 figures, and produces the UI-19 when someone leaves. See how HRify runs payroll.