Author: Candice Zulu
In our previous article, Understanding your payslip: A beginner’s guide, we walked through the basics of reading your South African payslip and understanding what each section means. As part of our ‘Your questions answered’ series, we are diving a little deeper into common payslip deductions, starting with UIF.
If you are new to the workforce, you might have noticed a small deduction on your payslip labelled “UIF” and wondered what it is for. UIF stands for the Unemployment Insurance Fund, a government initiative that helps provide short-term financial relief to workers who become unemployed or are unable to work due to maternity, illness or adoption leave.
How much do you contribute?
Each month, 1% of your salary is deducted for UIF, and your employer contributes another 1% on your behalf. This means 2% of your salary goes into the UIF system. For example, if you earn R10,000 per month, R100 is deducted and your employer contributes another R100.
When can you claim?
- You can claim from UIF if you:
- Lose your job (not due to resignation)
- Are on maternity leave
- Are ill and unable to work
- Need to take time off for adoption leave
To claim, you must register with the Department of Labour and follow the application process. Knowing about UIF is important as it is a safety net when life takes unexpected turns.
If your team would benefit from a deeper understanding of how payslips work, we offer a practical HR mini training session titled Understanding your payslip – ideal for onboarding new employees or refreshing existing teams. We break down the key components step-by-step, including income types, allowances, company benefit contributions, fringe benefits and deductions, empowering employees to better understand their payslips and how their earnings, benefits and deductions are structured.
Interested? Reach out to us for more or to book a session.
Stay tuned for more articles in this series, as we unpack other payslip items like income tax, total cost-to-company, and tips for managing your first salary in forthcoming newsletters.