We were notified on the 1st of June 2021 by National Treasury that the monthly UIF contribution limit has been increased to R17 712 per month, effective from 1 June 2021.
There hasn’t been a raise in the UIF contributions since 2012, and with a sharp rise in claims for “reduced work time” to accommodated Covid-19 safety measures in the workplace, as well a loss of jobs permanently during the pandemic, all resulting in an increase of volumes of normal UIF claims .
During this time the UIF benefit limit was raised higher to R17712 per month, which is used to calculate the UIF benefits Payable to the employee. The contribution to the fund however remained the same at R148.72 for both employee and employer.
As from the 1st of June 2021, National Treasury has announced that the UIF contribution limit to the fund will be increased R17 712 per month, or R212 544 per annum, or a maximum contribution of R177.12 by both the employee and the employer.
The monthly contributions limit value is now the same as the same as the monthly benefit value, and over time will help to stabilise the Fund Financially.
GreatSoft Payroll has implemented the change as from the 1st of June 2021, and all our clients have been updated.
