How to calculate UIF in South Africa
UIF is calculated at 1% of the employee's UIF remuneration, matched by 1% from the employer, on earnings capped at R17,712 per month (R212,544 a year). The maximum contribution is therefore R177.12 from the employee and R177.12 from the employer, and both amounts are declared and paid on the monthly EMP201.
Payroll Africa Editorial · SARS Payroll Compliance Team
The Payroll Africa editorial team is composed of registered tax practitioners, payroll administrators and BCEA specialists who maintain the SARS PAYE, UIF, SDL and ETI engines that power the platform. Every article is reviewed against the current SARS BRS and Basic Conditions of Employment Act before publication.
- SARS registered tax practitioners
- SAPA-affiliated payroll administrators
- BCEA and LRA compliance reviewers
Last updated 15 Aug 2026
The calculation
Take the employee's UIF remuneration for the month, cap it at the ceiling, and multiply by 1% for each side.
- Employee earning R12,000 — R120.00 employee, R120.00 employer, R240.00 total
- Employee earning R17,712 — R177.12 each side, the maximum
- Employee earning R40,000 — still R177.12 each side, because of the ceiling
- Weekly wage of R3,000 — the ceiling is applied pro rata for the pay period
What counts as UIF remuneration
UIF remuneration is broadly the employee's total remuneration excluding certain items. Commission, overtime and most allowances are included. Excluded are amounts paid to reimburse actual expenses, pension or retirement annuity lump sums, and amounts paid on termination such as severance.
Who is excluded from UIF
Not every worker contributes. Employers still declare these employees on payroll, but no UIF is deducted or paid over for them.
- Employees working fewer than 24 hours a month for that employer
- Learners under a registered learnership agreement
- Public servants in national or provincial government
- Foreign workers on a contract requiring them to leave the country at the end
Paying and declaring UIF
The combined 2% is declared on the EMP201 and paid to SARS by the 7th of the following month. Separately, monthly employee declarations must reach the Department of Employment and Labour through uFiling or a UI19 submission, and when employment ends the employer must issue a UI19 within seven days so the employee can claim.
Frequently asked questions
Related guides
Ready to run compliant SARS payroll?
Start free, migrate in a day, and process your first payroll in minutes.