Changes to the unemployment insurance fund (UIF) rules in South Africa have an effective date of 1 March 2018.
The changes concern “learners” and employees who intend to repatriate (that is, return to their country of origin) at the end of their working period in South Africa (expatriate employees). The measures will require employers that have eligible learners and expatriate employees to amend their payrolls effective 1 March 2018, to include contributions to UIF for these individuals.
These individuals and their employers will need to contribute 1% of the remuneration paid by the employer to the employee. The employer therefore must remit a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer). The contribution is capped at a maximum of R148.72 per month for employees earning R148.72 per month or more.
Read a March 2018 report [PDF 78 KB] prepared by the KPMG member in South Africa
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