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UNEMPLOYMENT INSURANCE CONTRIBUTIONS CEILING RAISED

In Article Archive - Teazer, Labour News, Labour News Teazer by Jan TruterLeave a Comment

The maximum amount on which unemployment insurance fund contributions are calculated has been raised to R17712.00 (The previous maximum was R14872.00 per month). The change is effective from 1 June 2021.

The effect of this is that the maximum contribution which may be deducted for employees who earn more than R17712.00 per month, is R177.12 per month (i.e. 1% of R17712.00). The same applies in respect of the UIF contributions by the employer.

This change will affect the employee and employer contributions in cases where the employee currently earns between the previous maximum threshold (R14 872/month) and the new threshold (R17 712/month).

This amendment brings the amount on which UIF contributions are calculated in line with the maximum amount on which UIF benefits are calculated (The maximum benefit remains at 38% of R17712.00).

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