Employers must pay unemployment insurance contributions of 2% of the value of each worker’s pay per month. The employer and the worker each contribute 1%.
Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African Revenue Services (SARS).
Domestic employers and their workers are included under the Act since 1 April 2003.
Workers who earn more than the annual, montly or weekly maximum earnings ceiling must also contribute to the Fund, but their contributions are worked out on the maximum earnings ceiling.
NB: CURRENTLY THE CEILING IS STANDING AT (STATE THE CURRENT CEILING)
Example:
If a worker earns R10 000 per month and the monthly earning ceiling is R1 096 per month, the worker's contribution will be worked out on R8 836.
Employers may not –
If employers deduct too much money by accident, they must pay the extra money back to workers.
Based on Legislation in Section 6 and Section 7 of the Unemployment Insurance Contributions Act
Based on Legislation in Section 8, Section 9, of the Unemployment Insurance Contributions Act
© 2019 - The South African Department of Employment & Labour