UIF earnings ceiling increase

Increase in UIF ceiling 2012 from 1 October 2012.

The maximum earnings ceiling used for the calculation of UIF contributions has been increased from
R149 736 to R178 464 per annum with effect from 1st October 2012.

This makes the new earnings ceiling for the calculation of UIF as follows:

Period Ceiling :

From 1 October 2012 : Year R178 464

(Before 1/10/2012 : R149 736)

From 1 October 2012 : Monthly R14 872

(Before 1/10/2012 : R12 478)

From 1 October 2012 : Fortnight R6 864

(Before 1/10/2012 : R6 239)

Week R3 432

(Before 1/10/2012 : R3 120)

This translates to max UIF to be deducted monthly as follows:

1% of the income for UIF is paid by the employee & 1% is paid by the employer.

This is based on your Monthly, fortnightly, weekly salary from the first R1 up to the Capp.

The Max monthly salary of R14 872 Max UIF is deducted on this amount if the salary is higher it is capped at this amount for UIF.

Example: On Max - Monthly Salary of R14 872

Employee : R148.72 (OLD : R124.78)(MAX : R12 478)

Employer : R148.72 (OLD : R124.78)(MAX : R12 478)

Total monthly : R297.44 (OLD : R249.56)(MAX : R12 478)

Do yourself a favour - do what you have to right now to make sure this change is implimented in your October payroll.

This is just the sort of relatively "small change" problem for small business owners to clean up down the line if you don't do it right when you're supposed to.   If you need any help or any queries regarding this issue give me a call/e-mail