UIF Rates and Thresholds 2025
14 Apr 2025
Understanding UIF: Rates and Thresholds in South Africa
The Unemployment Insurance Fund (UIF) is a crucial financial safety net for workers in South Africa. It provides short-term relief to employees who find themselves unemployed or unable to work due to maternity leave, adoption leave, parental leave, or illness. Additionally, it offers financial support to the dependents of a deceased contributor.
How UIF Contributions Work
UIF contributions are mandatory for both employees and employers. The contribution rate is 2% of an employee’s remuneration, split equally between the employer and the employee. This means:
- Employees contribute 1% of their salary.
- Employers contribute 1% on behalf of their employees.
UIF Threshold
The UIF threshold determines the maximum earnings on which contributions are calculated. As of 2025, the UIF earnings ceiling is R17,712 per month or R212,544 annually. This means:
- If an employee earns above R17,712 per month, their UIF contribution is capped at R177.12 per month.
- The total UIF contribution (employee + employer) for high earners is R354.24 per month.
Why the UIF Threshold Matters
The UIF threshold ensures that contributions remain fair and sustainable. Employees earning above the ceiling will not contribute more than the capped amount, but their UIF benefits will also be calculated based on the threshold rather than their full salary.
UIF plays a vital role in providing financial security during times of unemployment or work-related disruptions. Understanding the rates and thresholds helps employees and employers plan their contributions effectively.
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