How UIF is calculated in South Africa: rate, ceiling and a worked example
The Unemployment Insurance Fund (UIF) pays benefits to workers who lose their job or take maternity, adoption or illness leave. It is funded by contributions from both sides: the employee and the employer each pay 1% of the employee's pay. This guide shows what the employee share does to monthly pay in 2026/27, using the SARS figures.
The rule in one paragraph
SARS states that UIF contributions are determined on pay of up to R17,712 a month, a limit in force since 1 June 2021. The employee pays 1% of monthly pay up to that ceiling, so the most an employee pays is R177.12 a month, R2,125.44 a year. The employer pays the same amount on top. It is not taken from your pay.
Five monthly salaries
| Monthly pay | Employee UIF per month | Employee UIF as a share of pay | Employer UIF per month (on top) | Pay after UIF per month |
|---|---|---|---|---|
| R6,000 | R60.00 | 1% | R60.00 | R5,940.00 |
| R10,000 | R100.00 | 1% | R100.00 | R9,900.00 |
| R17,712 | R177.12 | 1% | R177.12 | R17,534.88 |
| R25,000 | R177.12 | 0.71% | R177.12 | R24,822.88 |
| R50,000 | R177.12 | 0.35% | R177.12 | R49,822.88 |
At R10,000 a month the employee pays R100.00, a full 1%. At exactly R17,712 the contribution is R177.12, the maximum. At R50,000, R32,288 of each month is above the ceiling and carries no UIF, so the contribution stays at R177.12 and its share of pay falls to 0.35%.
Around the ceiling
There is no step at the ceiling. Contributions rise with pay by 1% of each rand until the ceiling is reached, and then stop rising.
| Monthly pay around the ceiling | Employee UIF | Pay after UIF |
|---|---|---|
| R17,711 | R177.11 | R17,533.89 |
| R17,712 | R177.12 | R17,534.88 |
| R17,713 | R177.12 | R17,535.88 |
| R20,000 | R177.12 | R19,822.88 |
A rise from R17,711 to R17,713 a month adds only R0.01 of UIF, and a rise to R20,000 adds nothing more. The yearly equivalent of the ceiling is R212,544: an employee on a yearly salary above that pays the maximum of R2,125.44 a year.
UIF is separate from PAYE
The income tax rebates and the medical scheme fees tax credit do not reduce UIF. They only reduce PAYE. UIF is worked out on the same monthly pay, and both come out of the pay before it reaches the bank. For R10,000 a month, a salary of R120,000 a year, PAYE is R315.00 a month and UIF is R100.00, which leaves R9,585.00.
For a salary of R600,000 a year, R50,000 a month, UIF is R177.12 a month while PAYE for an employee under 65 with no medical scheme is R11,075.58 a month. For the PAYE side see South Africa tax tables 2026/27 explained, and for yearly salary tables see salary after PAYE and UIF.
Reading the UIF line on a payslip
The employee line on a payslip should be 1% of the month's pay, or R177.12 if the pay is above R17,712. SARS says the contribution is worked out on the pay paid or payable in the month, so it is a monthly test. In a month with a one-off payment that lifts pay above the ceiling, the contribution for that month stops at R177.12, and in a quiet month on lower pay it is 1% of that lower pay. The calculators on this site assume twelve equal payments, so they show the same UIF in every month.
As a quick check, divide the UIF line by R177.12: a result of 1 means the ceiling was reached. Anything under R6,000 of pay a month gives a contribution under R60.00. Over a full year at the ceiling the employee pays R2,125.44 and the employer the same, so the fund receives R4,250.88 for that employee.
What the employer pays besides UIF
Employers also pay a Skills Development Levy and the employer's 1% UIF. Neither is taken from the employee's pay, so neither is in the tables. The employer's UIF equals the employee's UIF, so on R17,712 a month or more the employer pays R177.12 a month and R354.24 a month goes to the fund in total.
Not covered: employees who are exempt from UIF, domestic workers' special arrangements, bonuses and other pay that varies by month, and any change to the ceiling after the check date on the Sources page.
Work out your own take-home paySources
- SARS: Unemployment Insurance Fund (rate and monthly ceiling)
- SARS: Unemployment Insurance Fund contributions (R17,712 a month)
- SARS: guide for employers in respect of employees tax (2027)
- Every rate used, with its source and check date: Sources and rates
This calculator is general information only. It uses the SARS pages listed on the Sources page, and your payslip, assessment and personal situation may differ. Rates as at 2 November 2026.