Our blog post today bears the news that the increase of the UIF contribution ceiling has come into effect. From 1 June 2021 onwards, your employees will be required to contribute 1% of their remuneration to the UIF, up to the new cap of R17 712 per month.
The increase of the UIF contribution ceiling has been in the works for quite some time and was in-fact initially planned to take effect from 1 March 2021.
Due to a lack of notice and the procedural incorrectness of announcing the increase during the budget speech 2021, the initial due date was scrapped to allow for further input and suggestions.
A public comment period was opened which ended on 31 March 2021, but no date of the impending change was ever stated by the UIF.
On 28 May 2021 it was announced that:
- The UIF contribution ceiling has been increased from R14 872 to R17 712;
- Effective from 1 June 2021.
The monthly contributions limit value is now the same as the monthly benefit limit value, and should help to maintain the stability of the UIF.
Despite the short notice, we have implemented the changes to our system today (1 June 2021).
- If you have already finalised payslips for June 2021, the changes to the contribution ceiling will not be reflected and we would recommend unfinalising and then re-finalising the affected payslips. We apologise for the inconvenience this causes. If you have already paid your employees for these payslips, please save a copy of all payslips prior to unfinalising them. The difference between the nett pay on the new payslip and the old payslip will need to be recouped from the employee. If you have already finalised your EMP201 and UIF Declaration, these will be regenerated and you will need to resubmit them if this has already been done.
- If you have not yet finalised payslips for June 2021, no action on your part will be necessary to effect any of the changes to your payroll. We have run comprehensive testing on the change, but please check that you are happy with your payslips before you submit them.
Should you have any question regarding this change, please feel free to contact [email protected] for assistance.
You can also view some of our related help pages: