How to calculate UIF

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UIF is calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer.

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Remuneration for UIF purposes is the employee’s remuneration, less certain exclusions such as commission, and is subject to a monthly income cap of R17 712. The maximum UIF contribution for each party is, therefore, R177.12 a month (R354.24 in total)*. For employees who are paid at more regular intervals (e.g. weekly), this cap will be apportioned across their pay periods – this may lead to slightly lower UIF contributions in the last pay period of the month.

If you have been making UIF payments for four years or more, you can claim up to 365 days. However, if you have been contributing for less than four years, you can only claim one day out of every five days you worked while contributing to the fund.

For example, if you are earning monthly, multiply your monthly salary by twelve and divide by 365.

For example, if you earn R5,000 a month, then your daily remuneration will be

5000 (salary) * 12 (months per year) / 365 (days a year) = R164.38 per day

The UIF payout system makes payments in the percentage of your earned salary while contributing to it. The highest amount that can be paid is 58% of what you earn per day. The high percentage applies to lower-paid workers.

Therefore, if you made R164.38 every day, and you qualify to get 58% of this amount, you will receive:

R164.38 * 58/100 = R95.34 daily