Unemployment Insurance Fund Contribution Ceiling Increase – 1 June 2021

Our blog post today covers the latest announcement that the increase of the UIF contribution ceiling has come into effect. As of 1 June 2021 onwards, your employees will be required to contribute 1% of their remuneration to the UIF, up to the new cap of R17 712 per month.

The increase originally was scheduled to be implemented from 1 March 2021 but due to insufficient notice being provided, the announcement was delayed and temporarily postponed until all parties could be awarded the time required to gather suggestion and input. The amendment was open to public comment until 31 March 2021.
On 28 May 2021, it was announced that:

  • The UIF contribution ceiling has been increased from R14 872 to R17 712; Effective from 1 June 2021.
  • The monthly contributions limit value is now the same as the monthly benefit limit value and should help to maintain the stability of the UIF.