UIF Contribution Threshold increased

Posted 15 June 2021 Written by SA Accounting Academy
Brought to you by SA Accounting Academy: The previous threshold was R14 872.00 per month.
his 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.
 
Click here to download the Gazetted Notice:

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.