The Minister of Finance has decided to postpone (for at least a year) the decrease proposed in the 2015 Budget of the UIF remuneration limit from R14 872 pm to R1 000 pm to allow more time for further consultation.
Note that the consultations will focus on:
- The need to implement the UIF Amendments Bill (the main purpose of this Bill is to increase the value of the benefit).
- Review of other earmarked taxes such as UIF, the Road Accident Fund and the Skills Development Levy (proposals of this intent were also made in the budget).
As with the postponement of the retirement reforms from 1 March 2015 to 1 March 2016, mention is made of “…engagement over the broader social security reform process”.
Take note for your planning for future payroll development that it looks likely that changes could be made to UIF, the Skills Development Levy, and possibly to the retirement reforms that are already promulgated with an effective date of 1 March 2016. The extent of these changes and the effective dates are obviously dependent on the outcome of the discussions, and we will keep you informed as the process moves forward.