We are writing this update to inform you of the UIF Contribution Ceiling Increase.
On the 28th of May 2021, Finance Minister Tito Titus Mboweni, signed off Gazette No 44641, which determines the limit for the Unemployment Insurance Fund contribution.
Effective from 1 June 2021, the contribution limit for UIF has increased from R14 872.00 per month to R17 712.00 per month.
You can find Government Gazette 44641 here.
Impact of UIF Contribution Ceiling Increase on payroll:
- No action is required from our users.
- We have implemented the UIF change to the PaySpace payroll system on time to be effective for the June processing month. All PaySpace payrolls have been automatically recalculated for June.
- Because the UIF contribution is calculated as a month-to-date amount, this value must be split per week for weekly paid employees. If the first week of June was already closed before this change was implemented, the system will automatically recalculate the UIF according to the new limit and adjust the contribution per person in the following week of June to ensure complete accuracy.
- No other Statutory changes have been announced.
Should you have any questions regarding this change, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected].
The PaySpace Team