Are the new UIF limit and rules operational yet?

Are the new UIF limit and rules operational yet?

Human Resources, Payroll / eTorQue

In May 2017, the UIF Amendments Bill was signed into Law. This amendment improved the benefits available to those on maternity, for dependents of those deceased and for those not working due to illness. In addition, the UIF limit increase was published by the Minister of Labour in Government Gazette No. 40691 dated 17 March 2017, which relates to unemployment benefits in terms of the Unemployment Insurance Act, 2001 (Act No. 63 of 2001).

However, the above amendments only applied to changes in benefits and there were no official changes under the UIF Contributions Act and as such the payroll limit should not be increased. Further, those responsible for making payments under UIF do not believe the amendments are implemented.

From a practical perspective therefore until further notice, the limit on payroll should be set to the legislated value of R178 464.00 per annum or R14 872.00 per month (maximum deduction R 148.72 per month). In addition, those expecting to receive the enhanced benefits are unlikely to find much joy when trying to claim (one should also remember that UIF benefits are only available to those who contribute to UIF so where no contributions have been made no benefits are claimable).