UIF contributions in South Africa (2026/2027)
The Unemployment Insurance Fund (UIF) pays short-term income to workers who lose their job or cannot work because of illness, maternity, adoption or the birth of a child. It is funded entirely by monthly contributions from employers and employees, as required by the Unemployment Insurance Act and the Unemployment Insurance Contributions Act.
Each side contributes 1% of the employee's monthly remuneration, for a combined rate of 2%. Contributions stop growing at the earnings ceiling of R 17 712,00 a month, so the most either side pays is R177.12, or R354.24 in total for one employee.
Worked example: UIF for a small business
A business has three employees on different salaries. The employer deducts 1% from each person's pay, adds its own 1%, and pays the combined amount over for the month:
| Employee | Monthly salary | Employee UIF | Employer UIF | Total |
|---|---|---|---|---|
| Receptionist | R 7 500,00 | R 75,00 | R 75,00 | R 150,00 |
| Bookkeeper | R 16 000,00 | R 160,00 | R 160,00 | R 320,00 |
| Operations manager | R 32 000,00 | R 177,12 | R 177,12 | R 354,24 |
| Total for the month | R 412,12 | R 824,24 |
The operations manager earns more than the ceiling, so UIF is worked out on R 17 712,00 only. Of the R 824,24 paid for the month, R 412,12 is the employer's own cost, or R 4 945,44 a year.
UIF contributions at common salaries (2026/27)
Contributions stop rising at the R 17 712,00 ceiling, so the effective rate falls for higher earners.
| Monthly salary | Employee UIF | Employer UIF | Total UIF | Total as % of salary |
|---|---|---|---|---|
| R 5 000,00 | R 50,00 | R 50,00 | R 100,00 | 2.00% |
| R 10 000,00 | R 100,00 | R 100,00 | R 200,00 | 2.00% |
| R 15 000,00 | R 150,00 | R 150,00 | R 300,00 | 2.00% |
| R 17 712,00 (ceiling) | R 177,12 | R 177,12 | R 354,24 | 2.00% |
| R 20 000,00 | R 177,12 | R 177,12 | R 354,24 | 1.77% |
| R 30 000,00 | R 177,12 | R 177,12 | R 354,24 | 1.18% |
| R 50 000,00 | R 177,12 | R 177,12 | R 354,24 | 0.71% |
| R 100 000,00 | R 177,12 | R 177,12 | R 354,24 | 0.35% |
Who must contribute to UIF?
Employers must register and contribute for every employee who works 24 hours or more a month for them, whether permanent, on a fixed-term contract or part-time. Domestic workers and farm workers are covered, so a household employing a domestic worker for 24 hours or more a month is an employer for UIF purposes. The Domestic Worker Wage Calculator includes UIF in its figures.
Employees working fewer than 24 hours a month for an employer are excluded, as are some public office bearers. Self-employed people and independent contractors do not contribute and cannot claim. Someone with two employers has UIF deducted by each, with its own ceiling.
The UIF earnings ceiling explained
The ceiling of R 17 712,00 a month (R212,544 a year) is the maximum amount of monthly earnings used to calculate contributions. The Minister of Employment and Labour sets it by notice in the Government Gazette, and it does not change with each tax year. An employee earning R 35 424,00 pays the same R177.12 as one earning exactly R 17 712,00. Benefits are also based on capped earnings, so a higher salary does not buy a larger UIF payout.
Employer duties for UIF
- Register. Register with the UIF through uFiling or a labour centre when you take on your first employee, and with SARS if you run PAYE.
- Deduct and contribute. Deduct 1% from each employee's pay and add the employer's 1%.
- Pay on time. Pay both portions by the 7th of the following month: through the EMP201 to SARS if you are registered for PAYE or SDL, or directly to the UIF on uFiling if you are not.
- Declare employee details. Keep each employee's details up to date with the UIF every month, including when someone joins or leaves.
- Show it on the payslip. The employee's UIF deduction should appear on every payslip.
- Help with claims. When employment ends, give the employee a completed UI-19 form and the documents they need to claim benefits.
SARS charges penalties and interest on late EMP201 payments, and the UIF can recover unpaid contributions from the employer.
What UIF pays out
Contributors build up one credit day for every four days worked, to a maximum of 365 credit days. Those credits fund several types of benefit: unemployment, illness, maternity, adoption, parental and commissioning parental benefits, as well as dependants' benefits paid to a surviving spouse or child. Unemployment benefits replace between 38% and 60% of capped earnings on a sliding scale, with lower earners receiving the higher percentage, while maternity benefits are paid at 66% of capped earnings. Use the UIF Payout Calculator to estimate a claim, and the Maternity Leave Calculator to plan maternity leave.
UIF and the rest of the payslip
UIF sits alongside PAYE and retirement fund contributions on a South African payslip. To see how they affect net pay, use the Salary Calculator or the PAYE Calculator, and check the brackets on our SARS tax tables page. For the full cost of a hire, use the CTC Calculator.
Frequently Asked Questions
How much is UIF in South Africa?
UIF is 2% of an employee's earnings in total. The employee pays 1%, which the employer deducts from their pay, and the employer adds another 1% of its own. Both contributions are worked out on earnings up to the monthly ceiling of R17,712, so neither side ever pays more than R177.12 a month for one employee.
Who has to contribute to UIF?
Every employer and employee covered by the Unemployment Insurance Act must contribute, including domestic workers, farm workers and part-time staff. The main exclusion is an employee who works fewer than 24 hours a month for that employer. Certain public office bearers are also excluded. If unsure, check with the UIF or a labour centre.
What is the UIF earnings ceiling?
The ceiling is R17,712 a month, which is R212,544 a year. Contributions are calculated only on earnings up to that amount. The Minister of Employment and Labour sets the ceiling by Government Gazette notice, and it also limits the benefits a contributor can claim.
What is the maximum UIF deduction per month?
The most that can be deducted from an employee's salary is R177.12 a month. The employer pays a matching R 177,12, so the total paid for one employee is capped at R354.24 a month, or R 4 250,88 a year. Anyone earning R17,712 or more pays exactly this amount.
How and when do employers pay UIF?
Contributions for each month are due by the 7th of the following month. Employers registered with SARS for PAYE or SDL declare and pay UIF together with PAYE on the monthly EMP201 return. Employers who are not registered with SARS, such as many households employing a domestic worker, pay the UIF directly through uFiling. If the 7th falls on a weekend or public holiday, pay by the last business day before it.
How do I register for UIF as an employer?
Register with the Unemployment Insurance Fund online through uFiling (www.ufiling.co.za) or at a Department of Employment and Labour office. You will need your business or ID details, bank details and information about each employee. If you run PAYE, you pay UIF through the EMP201 but still declare employee details to the UIF.
Does UIF apply to overtime and bonuses?
Yes. UIF is worked out on the employee's remuneration for the month, which includes overtime and bonuses, but the monthly ceiling still applies. An employee who normally earns well below R17,712 pays more UIF in a month with overtime or a bonus. One who already earns above the ceiling pays the same R177.12 regardless.
How much will I get from UIF if I lose my job?
UIF unemployment benefits replace between 38% and 60% of your earnings, capped at R17,712 a month, with lower earners receiving the higher percentage. You build up one credit day for every four days worked as a contributor, to a maximum of 365 days. The UIF Payout Calculator estimates your daily benefit and total payout from your salary and work history.
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