All employees that work for more than 24 hours per month must contribute to the Fund. It is illegal for employers not to make the deductions from the employee’s earnings. Even people earning high salaries (unless they are earning commission only) must contribute to the Fund, regardless of how much they earn. The Fund sets a ceiling amount of R224 080 per year (or R18 673 per month). Any employee who earns above this threshold will only contribute up to this amount. If they become unemployed they will receive benefits at the level of the ceiling.

Example:

Vernon is a company administrator and he earns R20 000 per month. The current threshold for UIF is R18 673 per month so Vernon will pay 1% of R18 673 and the company will pay 1% of R18 673 every month on his behalf to the UIF. If Vernon becomes ill and wants to claim Illness Benefits, the UIF will only pay him a percentage of R18 673 (not of his current salary of R20 000). The actual amount he will be paid will depend on the number of days he has been contributing to the Fund.