Unemployment Fund benefits out of sync
Following the Minister of Labour's announcement on 17 March regarding the payout limit for the Unemployment Fund
FOLLOWING the Minister of Labour’s announcement on 17 March regarding the payout limit for the Unemployment Fund (UIF), the Director of Legislation at Sage, Rob Cooper, says the changes have not yet been gazetted.
The minister has increased the limits to R212 539 a year, R17 712 per month and R4 087 a week as of 1 April.
This change does not affect the calculation of the contribution value under the Unemployment Insurance Contributions Act. This will only be adjusted when the Minister of Finance publishes the new limits
‘For now, the contribution and benefit levels are out of step and companies should not base their payroll UIF contribution calculation on the new benefit limits,’ says Cooper.
‘Developers of computerised payroll systems should not, at this stage, change the contribution level.
‘Unfortunately, the legislation around the UIF is poorly understood in the marketplace, which has led to some confusion.’
Cooper says that he has brought this issue to the attention of the South African Revenue Service (SARS) because it needs to be addressed urgently.
Unless a notice in terms of the Contributions Act is published with the same limit value and effective date, the contribution and benefit limits will remain desynchronised.
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