Accountancy in South Africa

>> Employment in South Africa

Social security / Unemployment taxes

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:

  • Non-employment related payments for example pensions and annuities and payment to a labour broker on possession of an exemption certificate;
  • Retrenchment pay;
  • Lump sum payments from pension, provident or retirement annuity funds;
  • Restraint of trade payments;
  • Commission;
  • Payment to juristic persons;
  • Payments to juristic persons;
  • Payments to independent contractors.

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.

Workmen’s compensation fund

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.


Latest version updated 15th March 2018

Country Breakdown

55.91

Million

Population

R

South African Rand

Currency

$ 294.8

Billion

GDP

1.22

Million

km2