What is UIF?
The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become unemployed or are unable to work due to maternity, adoption leave, or illness. It also provides relief to the dependants of a deceased contributor.
Who must pay UIF?
All employees, as well as their employers, are responsible for contributions to the UIF.
How much do you need to pay?
The amount of the contribution due by an employee, must be 1% of the remuneration paid by the employer to the employee.
The employer must pay a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer) within the prescribed period.
The maximum earnings ceiling is R14 872 per month, therefore the maximum contribution which can be deducted, for employees who earn more than R14 872 per month, is R148.72 per month.
The amounts deducted or withheld by the employer must be paid to SARS on a monthly basis.
What is SDL?
SDL is a levy imposed to encourage learning and development in South Africa and is determined by an employer's salary bill.
The funds are used to develop and improve skills of employees.
Who must pay SDL?
SDL is payable by employers who expect that their total salaries will be more than R500 000 over the next 12 months.
How much do you need to pay?
1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments).
The amounts deducted or withheld by the employer must be paid to SARS on a monthly basis.
