Unemployment insurance contributions to the Unemployment Insurance Fund (UIF) are based on remuneration (gross) as defined in the Income Tax Act, with the following exclusions:
The UIF monthly limit is currently R14,872. It is proposed that this amount is reduced to R1,000 per month for the 2015/2016 year. In effect employees will pay only R10 in monthly UIF contributions and employer the same amount per employee.
The aim of the Act is to provide for compensation in the case of disablement caused by occupational injuries or diseases, sustained or contracted by employees in the course of their employment, or death resulting from such injuries or diseases, and to provide for matters connected therewith.