Working with peoples salary slips on a daily basis UIF has become part of my every day working life! It's a three letter acronym (UIF) that I've learnt to ignore and bypass with the blink of an eye. I BET YOU DO TO.

Do you really know what UIF is?

UIF - Definition - Unemployment Insurance Fund. A Fund that's made available to people who for some reason or the other cannot work, whether it be maternity leave due to illness.

Money is deducted from your monthly salary or weekly wages and paid into the Unemployment Insurance Fund (UIF). The UIF was setup by the government to financially assist people who have lost their jobs, as well as those who are temporarily unemployed. The UIF also provides benefits for families after the breadwinner dies.

Anyone who is employed and who works for 24 hours or more a month including domestic and farm workers, is required to contribute to the fund. There are few exceptions to this requirement - mainly people who are employed by the national or provincial governments.

Your employer is expected to deduct the contributions from your earnings, and failure to do so is is an offense punishable with a fine or imprisonment. The contribution you are expected to make to the UIF is equal to one percent of your gross renumeration - that is, your salary before any deduction.
In addition to the one percent paid by you, as an employee, your employer must contribute one percent making a total contribution of 2 percent of your renumeration.

However, total contributions are calculated at 2 percent of your gross earnings up to R12 478 a month. So the maximum you and your employer may contribute is R249.50 a month to your UIF.