Slide 2

UIF Contribution Threshold increased

The previous threshold was R14 872.00 per month.

This increase will only affect the employee and employer contributions where the employee currently earns between the previous maximum threshold and the new threshold (between R14 872.00 and R17 712.00 per month).

Under the UICA, employers and employees must contribute 1% of the remuneration paid to the employee to the UIF.

When the increase was originally announced, the effective date was 1 March 2021.  The effective date has been postponed, and the Minister of Finance announced by notice in the Government Gazetted on Friday, 28 May 2021, that the new effective date is 1 June 2021.

In summary:

  • This increase is applicable to remuneration paid or payable by an employer to an employee during any month from 1 June 2021.
  • The previous limit of R 14 872 per month was therefore only applicable to remuneration paid or payable by an employer to an employee for any month up to 31 May 2021.

All employers and payroll providers are requested to immediately implement the increased remuneration amount to ensure that the unemployment insurance contributions for June 2021 is correctly determined and paid not later than 7 July 2021.

Click here to download the Gazetted Notice:

Get all your CPD online. SA Accounting Academy (SAAA) offers Subscription Plans, Live Webinars, Webinars On-Demand, Access to Experts, Courses, Articles and more:

Our Content

Live Webinars

View upcoming live accounting and practice management webinars.

Learn More

Webinars On-Demand

Browse our extensive range of relevant accounting and practice management webinars.

Learn More


Browse our relevant and practical online courses.

Learn More

CPD Subscription Plans

Access to professional and technical content that ensures both your knowledge and skills are maintained.

Learn More


Access updated legislation including amendments.

Learn More

Technical FAQs

A source of commonly asked technical accounting questions.

Learn More


There are not comments for this article at the moment, check back later.
You must be logged in to add a comment, log in now.
Need Help ?

Explore Smarty