UIF contributions in South Africa remain set at 2 percent of an employee’s remuneration in 2026, split equally between employer and employee. That means 1 percent is deducted from the employee’s salary and 1 percent is paid by the employer, with the total submitted monthly to SARS. The calculation matters for payroll accuracy across Gauteng because errors can affect payslips, compliance status, and an employee’s ability to claim UIF benefits later.
The earnings ceiling used for UIF calculations remains R17,712 per month. This cap determines the maximum amount on which UIF can be calculated, even if an employee earns more.
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UIF Contribution Rate and Ceiling for 2026
The statutory UIF contribution structure remains unchanged:
- Employee contribution: 1 percent of remuneration
- Employer contribution: 1 percent of remuneration
- Total contribution: 2 percent
Where an employee earns more than R17,712 per month, UIF is calculated only on R17,712.
This means the maximum UIF deduction per month is:
- R177.12 from the employee
- R177.12 from the employer
- R354.24 in total
Step by Step: How to Calculate UIF in 2026
Step 1: Identify the Employee’s Gross Remuneration
Determine the employee’s monthly remuneration used for UIF purposes. This generally includes regular earnings such as salary and most ongoing allowances.
Step 2: Apply the Earnings Ceiling
- If the monthly salary is R17,712 or less, use the full salary.
- If the monthly salary exceeds R17,712, use R17,712 as the calculation base.
Step 3: Calculate 1 Percent for the Employee
Multiply the applicable remuneration by 1 percent.
Step 4: Match the Contribution as Employer
The employer contributes the same amount.
Step 5: Confirm the Total
Add both contributions to determine the 2 percent total payable to SARS.
UIF Calculator Table for 2026
The table below illustrates how UIF contributions are calculated across different salary levels.
| Monthly Salary | UIF Salary Used | Employee (1%) | Employer (1%) | Total UIF (2%) |
|---|---|---|---|---|
| R5,000 | R5,000 | R50.00 | R50.00 | R100.00 |
| R10,000 | R10,000 | R100.00 | R100.00 | R200.00 |
| R15,000 | R15,000 | R150.00 | R150.00 | R300.00 |
| R17,712 | R17,712 | R177.12 | R177.12 | R354.24 |
| R25,000 | R17,712 (capped) | R177.12 | R177.12 | R354.24 |
| R40,000 | R17,712 (capped) | R177.12 | R177.12 | R354.24 |
If a salary exceeds R17,712, contributions remain capped at R354.24 total per month.
Who Must Pay UIF Contributions
UIF applies to most employees working 24 hours or more per month.
Exclusions include:
- Employees working fewer than 24 hours monthly
- Certain public office holders and specified government officials
Most private sector workers in Gauteng fall within the UIF contribution framework.
How and When UIF Must Be Paid
Employers registered for Employees’ Tax must submit UIF contributions monthly through the EMP201 declaration.
Payment is due within seven days after the end of the month. If the due date falls on a weekend or public holiday, payment must be made on the preceding business day.
Failure to comply may result in penalties and interest charges.
What This Means for Gauteng Residents
For employees in Gauteng, UIF deductions appear on monthly payslips but serve a longer-term purpose. Contributions support access to benefits in cases of:
- Unemployment
- Maternity or adoption leave
- Illness
- Death of a contributing employee
For employers, accurate UIF calculation ensures compliance with SARS regulations and reduces the risk of penalties or audit flags.
Given Gauteng’s large workforce and concentration of small businesses, correct UIF administration remains a key compliance responsibility across sectors.
Frequently Asked Questions
Is UIF still 2 percent in 2026?
Yes. The total contribution remains at 2 percent, split equally between the employer and the employee.
What is the UIF salary ceiling for 2026?
The monthly ceiling remains R17,712.
What is the maximum UIF deduction per employee?
R177.12 per month from the employee, matched by R177.12 from the employer.
Do fixed-term employees pay UIF?
Yes, provided they work 24 hours or more per month and are not otherwise exempt.
When must UIF be paid?
Within seven days after the month end.
What Happens Next
UIF contribution rates do not change frequently, but the earnings ceiling can be adjusted through a government notice. Employers and payroll administrators should confirm updated thresholds at the start of each tax year to ensure ongoing compliance.
