Tag Archives: UIF contribution calculator

Is UIF paid on overtime?

What should I get out in total after PAYE and UIF if my salary is R14700-00 and my overtime was R4055-17? Tax you will pay / PAYE (Pay As You Earn) for your age group and income bracket: R 2716.12 (as per PAYE tables provided by SARS)
Take home pay = Gross salary – PAYE – UIF

UIF / Unemployment Insurance Fund is levied at 1% of your taxable income, at most R148.72/month
Take home pay = R 18755.16 – R 2716.12 – R 148.72
Take home pay: R 15890.32

In summary, UIF is calculated on gross and gross includes overtime.

More Information on UIF

Is UIF calculated before or after tax?


UIF is Calculated on gross income. The calculation of UIF is not a simple matter of applying 1% to the gross pay of an employee. The calculation of the amount of income that is subject to UIF, is set out in the UIF Act and the Income Tax Act.

The Unemployment Insurance Contributions Act, 2002 states the following:
“Subject to subsection (2), the amount of the contribution payable in terms of section 5 –
a) by an employee, must be one per cent of the remuneration paid or payable to that
employee by his or her employer during any month; and
b) by an employer in respect of any one of its employees, must be equal to one per cent of the
REMUNERATION paid or payable by that employer to that employee during any month.

REMUNERATION means “remuneration” as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act, but does not include any amount paid or payable to an employee –
(a) by way of any pension, superannuation allowance or retiring allowance;
(b) which constitutes an amount contemplated in paragraphs (a), (cA), (d), (e) or (eA) of the
definition of “gross income” in section 1 of the Income Tax Act; or
(c) by way of commission”
Following from this, the Income Tax Act, 1962 (Act, 1962 defines “remuneration” as follows:
“Remuneration” means any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument
pension, superannuation allowance, retiring allowance or stipend, whether in cash or
otherwise and whether or not in respect of services rendered, including–
a) any amount referred to in paragraph (a), (c), (cA),(d), (e), (eA) or (f) of the definition of
“gross income” in section one of this Act;
b) any amount required to be included in such person’s gross income under paragraph (i) of
that definition;
bA) any allowance or advance, which must be included in the taxable income of that person in
terms of section 8(1)(a)(i), other thani) an allowance in respect of which paragraph (c) applies;
ii) an allowance or advance paid or granted to that person in respect of
accommodation, meals or other incidental costs while that person is obliged to
spend at least one night away from his or her usual place of residence in the
and so forth – refer to the relevant act for more information

More Information on UIF

Is UIF taxable?

Any payment that you receive from the UIF is tax-free. This includes a pay-out as a result of being without a job or because of maternity leave. If you have taken maternity leave and are planning on or have received a payment from the UIF, you will not pay tax on this income


If you have been contributing to the Fund for four years or more, then you can claim for up to 238 days. If you have been contributing for a shorter period, then you can claim 1 day for every 6 days that you worked while you were contributing to the Fund. If you take maternity leave, you can only claim up to 121 days. The Fund pays a percentage of the wage/salary that you earned while you were contributing to the fund. The highest amount that can be paid is 58% of what you earned per.

More Information on UIF