2017 UIF Increase: The Facts

Updated on 7 July 2017 with information about uFiling issues

You might have heard about an increase regarding the Unemployment Insurance Fund (UIF). We would like to provide some clarity on this issue, which seems to have been creating some confusion.

There has, in fact, been an increase. However, this increase has been to the limit that must be used by the UIF to calculate benefit amounts – not contributions. With effect from 1 April 2017, the monthly limit for calculating benefits has been increased from R14,872 to R17,712, as per the Minister of Labour’s notice in the Government Gazette (of 17 March 2017). The corresponding new annual and weekly limits for calculating benefits are R212,539 and R4,087, respectively.

As far as the monthly limit for contributions goes, it has not been changed yet. Therefore, SimplePay must still apply a monthly limit of R14,872 to UIF contributions calculated on the system. As a result, the maximum monthly contributions remain R148.72 for the employee and the employer. This is in line with information received from SARS and opinions expressed by well-known tax experts.

Before any changes can be made to the system, the Minister of Finance has to announce an increase to the limit that must be used when calculating contributions. Currently, there is no indication of when such an announcement will be made, and until such time that an announcement is made, the limits for calculating benefits and contributions will remain out of sync. As soon as an increase to the contribution limit is announced, the system will be updated to ensure that you remain compliant.

Even though SARS and SimplePay are correctly using the existing monthly contribution limit of R14,872, it has come to our attention that uFiling is applying an erroneously updated limit of R17,712. This has already been reported to the UIF Commissioner, and they are busy investigating and working on fixing this issue.

SimplePay users can use our direct submission function, which sends an electronic file to the UIF that bypasses the incorrect calculations being performed by uFiling. More information can be found here.

If you have any questions, you are welcome to email us at [email protected] to assist you.

The SimplePay Team

8 Replies to “2017 UIF Increase: The Facts”

  1. Dear SimplePay

    Please can you communicate this information with the Department of Labour?! They have increased the rates on uFiling and I have advised my clients to change their gross salary to R14 872 as an interim work around.
    Even when the DOL was contacted they insisted that the contribution threshold has increased as well.
    This is very embarrassing when you working for a Government Department and the outside people know more than you…
    This is know from 1st hand experience.

    1. Hi Janine

      Thank you very much for your comment. We are sorry to hear that you have been experiencing inconvenience with this uFiling issue.

      Unfortunately, we have as much influence on the Department of Labour as you, but we’re working on escalating it in any case.

      In the meantime, we’d like to add a reminder that SimplePay clients have the option to submit directly to the DOL using our system. Therefore, if you choose to submit through our system, you will not have to use uFiling.

      More information about how to use SimplePay for direct submissions can be found here.

      The SimplePay Team

    1. Hi Sipho

      Thank you for your question.

      We are not aware of any change in the regularity with which UIF contributions should be paid over. The rule is that it must be paid within seven days after the end of the month during which the amount was deducted.

      Please let us know if you found information to the contrary and we will gladly investigate this further.

      The SimplePay Team

    1. Hi Mel

      Thank you for your questions.

      At SimplePay, our focus with regards to UIF is on calculating the contributions and helping employers to deduct and pay over these contributions.

      I would like to direct you to the website of the Department of Labour for more information regarding the claiming and receiving of UIF benefits.

      Please let us know if we can be of any further assistance regarding the calculation and deduction of UIF contributions on our system.

      The SimplePay Team

  2. Hi,
    Can you please tell me whether Uif pays out weekly or monthly and if that is the case, for what duration.
    Regards
    Dawie

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