UIF ceiling — the R17,712 monthly limit and what it means for your payslips
UIF is 1% of remuneration from the employee and 1% from the employer, but only on the first R17,712 of monthly remuneration. That caps the contribution at R177.12 each per month, R354.24 in total, no matter how high the salary is.
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 23 Aug 2026
How the ceiling is applied
The ceiling applies per employee, per month, on remuneration for UIF purposes. An employee earning R12,000 contributes R120 and the employer matches it. An employee on R40,000 contributes only R177.12 because the base is limited to R17,712.
For weekly or fortnightly payrolls the annual ceiling of R212,544 is apportioned to the pay period. Getting this wrong on weekly wage runs is one of the most common UIF errors we see in migrations from spreadsheets.
- Monthly ceiling — R17,712 remuneration, R177.12 maximum contribution each side
- Annual ceiling — R212,544 remuneration, R2,125.44 maximum each side
- Both halves are paid over by the employer on the EMP201 and reported under IRP5 code 4141
Who is excluded from UIF
Not every worker contributes. The Unemployment Insurance Contributions Act excludes specific categories, and deducting UIF from an excluded worker creates a refund problem later.
- Employees working less than 24 hours a month for an employer
- Learners under a registered learnership agreement
- Public servants in national or provincial government
- Workers who enter the country to work under a contract requiring repatriation
- Employees receiving only a pension or commission-only earnings
What the contribution buys
UIF credits fund unemployment, illness, maternity, parental, adoption and dependants' benefits. Credits accrue at one day of benefit for every four days worked, capped at 365 days over a four-year cycle, and benefits are paid on a sliding income replacement rate between 38% and 60% of the last salary.
Declaring UIF correctly
Contributions are declared monthly on the EMP201 to SARS, while employee-level detail goes to the Department of Employment and Labour through uFiling. When employment ends the employer must submit a UI19 within seven days so the employee can claim.
Frequently asked questions
Related guides
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