What is UIF (Unemployment Insurance Fund)?
Definition
UIF is a South African social security fund that provides short-term financial relief to workers who become unemployed, ill, or go on maternity leave.
Explained Simply
Both employer and employee contribute 1% of the employee's remuneration to UIF, for a total of 2%. The contribution is capped at a maximum monthly salary of R17,712 (meaning maximum contribution is R177.12 each). Employers must register with the Department of Employment and Labour and pay monthly via EMP201. Domestic workers are also covered. UIF benefits include unemployment, illness, maternity, adoption, and dependant benefits.
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Related Guide
How-To: Register For Uif
Read guideRelated Terms
PAYE (Pay As You Earn)
PAYE is the system through which employers deduct income tax from employees' salaries and pay it directly to SARS on their behalf each month.
SDL (Skills Development Levy)
SDL is a compulsory levy of 1% of total employee remuneration that South African employers pay to fund skills development and training programmes.
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