How is UIF calculated?

The system calculates UIF automatically as both an employee deduction and a company contribution.

UIF is 1% of UIF remuneration, capped at R177.12 per month.

UIF remuneration includes most taxable income like salary, bonuses, overtime, allowances, and taxable fringe benefits. Exclude certain taxable incomes, such as commission.

EXAMPLE: 

Basic Salary = R6000
Overtime = R820
Commission = R4000
Medical Aid Company Contribution = R2000
Medical Aid Employee Deduction = R1000
Pension Fund Company Contribution = R700

UIF Remuneration = R6000 + R820 + R2000 + R700 = R9520 x 1% = R95.20

Since this amount is less than the R177.12 limit, both the amount for the deduction and contribution will be R95.20.

For full details, see the Guide for Employers in respect for Unemployment Insurance Fund on the SARS Website.