The Minister of Finance after consultation with the Minister of Employment and Labour and the Unemployment Insurance Commissioner announced by notice in Government Gazette 44641 on Friday, 28 May 2021, that the contributions to the Unemployment Insurance Fund must be determined on remuneration not exceeding R 17 712 per month (previously R 14 872).
This increase is applicable to remuneration paid or payable by an employer to an employee during any month from 1 June 2021. This change had initially been announced as being effective 1 March 2021. The delay in the change was necessary to give payroll providers adequate time to make the necessary changes to their payroll systems. These changes will need to be made this month as the UIF contributions for June 2021 will need to be correctly determined so that payment can be made no later than 7 July 2021.
It is interesting to note that the monthly contributions limit value is now the same as the monthly benefit value. These values had not been aligned for years and this had caused confusion to both contributors and claimants.