UIF contributions are 2% of an employee's monthly remuneration: 1% deducted from the employee and 1% paid by the employer. The calculation is capped at earnings of R17,712 a month, so the most either side pays is R177.12 a month per employee. You declare and pay UIF every month, usually on your EMP201 to SARS, by the 7th of the following month.
What UIF is
The Unemployment Insurance Fund (UIF), run by the Department of Employment and Labour, pays short-term relief to workers who lose their jobs or can't work because of:
unemployment (dismissal, retrenchment or the end of a contract)
illness
maternity, adoption or parental leave
the death of a contributor (benefits to their dependants)
Workers can only claim if their employer registered them and paid their contributions.
Who must contribute
Every employer must register for UIF and pay contributions for employees who work 24 hours or more a month. That includes:
full-time and part-time staff
domestic workers
casual workers who work 24 hours or more a month
Not covered:
employees who work fewer than 24 hours a month for you
national and provincial government employees (public servants)
certain other categories excluded by the Unemployment Insurance Act
Read more about UIF for casual staff.
How to calculate UIF
Take the employee's monthly remuneration (salary, wages, overtime, commission and most allowances).
If it's more than R17,712, use R17,712.
Employee's share: 1% of that amount, deducted from their pay.
Employer's share: another 1%, paid by you.
Examples:
| Monthly salary | Employee pays (1%) | Employer pays (1%) | Total to UIF |
|---|---|---|---|
| R6,000 | R60.00 | R60.00 | R120.00 |
| R15,000 | R150.00 | R150.00 | R300.00 |
| R17,712 | R177.12 | R177.12 | R354.24 |
| R40,000 | R177.12 | R177.12 | R354.24 |
Above R17,712 a month, the contribution stays at R177.12 each.
How to register and pay
If you're registered with SARS for PAYE or SDL:
Declare UIF monthly on your EMP201 together with PAYE and SDL.
Pay by the 7th of the following month (the business day before if the 7th falls on a weekend or public holiday).
Reconcile on your EMP501: interim by 31 October and annual by 31 May.
If you're not registered with SARS (for example, most households employing a domestic worker):
Register and declare through the Department of Employment and Labour's uFiling system.
Either way, also declare your employees to the Department of Employment and Labour. Paying the money to SARS covers your contributions, but employees must also be declared on the UIF system so they can claim benefits. See UIF registration with SARS and Labour, or the guide for domestic employers.
Need help? Smartbook can handle your UIF registration.
Common UIF mistakes
Only paying, not declaring. Contributions paid to SARS but employees not declared to Labour means staff can't claim.
Ignoring the cap. Calculating 1% on the full salary of higher earners overpays.
Forgetting part-timers who work 24 hours or more a month.
Not deducting the employee's share and then having to cover it yourself.
Late EMP201s, which attract penalties and interest.
UIF is one part of payroll
Employers also deal with PAYE and, if expected leviable payroll exceeds R500,000 over the next 12 months, the Skills Development Levy. See Skills Development Levy (SDL): who pays and how much. Our free PAYE calculator works out PAYE and UIF for a salary.
Frequently asked questions
How much is UIF per month? 2% of the employee's monthly remuneration: 1% from the employee and 1% from the employer, on earnings up to R17,712 a month. The maximum is R177.12 each.
What is the UIF ceiling in 2026? R17,712 a month (R212,544 a year).
Do I have to pay UIF for a part-time worker? Yes, if they work 24 hours or more a month for you.
Where do I pay UIF? Most employers declare and pay UIF on the EMP201 to SARS. Employers who aren't registered with SARS, such as many domestic employers, use the Department of Employment and Labour's uFiling system.
Is the employer's UIF tax-deductible? Yes. The employer's 1% is a business expense in the same way as salaries.