What is the Threshold for UIF in 2025?

By Tevait Feanle •  Updated: 01/09/25 •  4 min read
UIF

The UIF, or Unemployment Insurance Fund, is a social security system in South Africa that provides short-term financial relief to workers who have lost their jobs or cannot work due to illness, maternity, or adoption leave. Employers are required by law to register their employees for UIF and to make monthly contributions to the fund based on a percentage of their employees’ salaries. Calculating that percentage and understanding the maximum threshold for UIF can be complicated, so we’ve compiled this handy guide to help you.

- ADVERTISEMENT -

What is the Threshold for UIF?

 For 2025, the UIF threshold is R 17 712 per month or R 212 544 annually. This means you will pay a maximum of R177.12, and your employer will pay the same on your behalf ( a total of R354.24), if you earn a higher salary.

The ‘UIF threshold’ is the point at which your UIF contribution is capped. This means you will pay 1% (and your employer matches 1%) of your actual salary amount up to the threshold. After that, you will only pay the capped amount regardless of your actual income.

This can be a difficult concept for people to understand. In effect, you will only pay over R354.24 to the UIF, with R177.12 coming from your earned monies and the rest matched by the employer if you earn over the threshold amount (R17712 per month or more). If your remuneration is less than this amount, you will only pay 1% of your earnings, with the remainder matched by the employer.

What is the Maximum Amount that Can Be Deducted for UIF?

Employers must deduct 1% of an employee’s gross salary and contribute an additional 1% to the UIF fund. This means that the total UIF contribution is 2% of the employee’s gross salary, but you only have the 1% amount removed from your payslip. Your employer pays the additional 1% of their money on your behalf. 

A maximum amount of UIF can be deducted, updated and issued regularly by SARS. In 2025, this amount will be R177.12, paid from your earnings and matched by your employer, for a total maximum contribution of R354.24. This threshold has been in place since June 2021, when it was last updated. You can always monitor if there are changes to the UIF amount by checking the SARS website. 

- ADVERTISEMENT -

Which Employees are Exempt from UIF?

There are certain categories of employees who are exempt from contributing to UIF. These are:

Remember that you will also become ineligible for UIF if you are dismissed for theft, bad behaviour, or certain other conditions- although this does not exempt you from paying UIF.

Is UIF calculated based on gross or basic salary?

UIF contributions are calculated based on an employee’s gross salary. This includes all forms of remuneration, such as basic salary, overtime, bonuses, and allowances. While most taxable income types are included, commissions are not—salespeople will only have their UIF calculated based on their basic and any other eligible payments.

It is important to remember that UIF benefits are also calculated based on an employee’s gross salary. When an employee claims UIF benefits, the benefit amount will be calculated based on the employee’s average earnings over a specified period, considering all forms of remuneration. Remember that you must claim your UIF within 6 months of becoming unemployed.

While the concept of a UIF ‘threshold’ can seem complicated, it is actually very simple. With this guide to help, you hopefully understand the UIF threshold and how your UIF payments are calculated much better. It is a good idea for all people having UIF deducted from their payslips to register on the uFiling website (ufiling.co.za) to regularly check that their contributions are actually being paid over by their employer. This keeps the employer compliant and ensures you can address any irregularities before you need to claim from the fund. While most employers perform their duties above board, this also ensures you will notice if your employer is behaving deceitfully with the due monies.

- ADVERTISEMENT -

Keep Reading

How To Submit UIF Declarations Online

How To Submit UIF Declarations Online

You can submit your UIF declaration online, but there are different things you should know. Read on to learn how to submit UIF declarations online. 

How to Claim Paternity Leave from UIF South Africa 

How to Claim Paternity Leave from UIF South Africa 

Following these steps, you can confidently navigate the UIF paternity leave claim process and enjoy precious moments with your newborn child.

When to Claim UIF After Maternity Leave?

When to Claim UIF After Maternity Leave?

We will be taking you through topics like "When to claim UIF after maternity leave" "Can I claim UIF after claiming maternity benefits"

How to Apply for a UIF Certificate of Compliance

How to Apply for a UIF Certificate of Compliance

To avoid such a scenario, you can get a certificate of compliance. Read on to learn how to apply for a UIF certificate of compliance.  

How do I Apply For Retrenchment for UIF?

How do I Apply For Retrenchment for UIF?

Apply For Retrenchment for UIF. When you are retrenched, you can claim your benefits, and there are different things you should know

Documents Needed To Claim UIF

Documents Needed To Claim UIF

Who is Exempt From Paying UIF In South Africa

Who is Exempt From Paying UIF In South Africa

Who is Exempt From Paying UIF. As we continue to update you on the UIF scheme, we will share those exempted from paying UIF in South Africa.

How to Change the Name Of A Company At UIF

How to Change the Name Of A Company At UIF

This thorough guide's goal is to help you successfully navigate the process of changing the business name at UIF in South Africa.

How to Pay UIF Arrears

How to Pay UIF Arrears

How Much Will I Get From UIF?

How Much Will I Get From UIF?

How Much Is UIF Death Benefits

How Much Is UIF Death Benefits

How Much Is UIF Death Benefits. This article explains everything you need to know about UIF death benefits. 

How To Report An Employer For Not Paying UIF

How To Report An Employer For Not Paying UIF

This article will explain the measures you can take to report an employer for not paying UIF. Why Is My UIF Not Paying Out and many more

How to Claim UIF When Retired

How to Claim UIF When Retired

In this article, we will be answering questions related to UIF retirement and claims and how to claim UIF when retired

How to Claim UIF via uFiling

How to Claim UIF via uFiling

In the following sections, you will find everything you should know about making a UIF claim through the UFiling System.

Benefits of Contributing to UIF

Benefits of Contributing to UIF

Benefits of Contributing to UIF. This article explains how UIF works, its advantages, and everything you may need to know about this fund