The maximum amount on which unemployment insurance fund contributions are calculated has been raised to R17 712.00 (The previous maximum was R14 872.00 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 R17 712.00 per month, is R177.12 per month (i.e. 1% of R17 712.00). 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 R17 712.00).

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