The threshhold for paying UIF is R12,478.00pm. If you earn more than that your 1% (plus employer's 1%) contribution is capped at R124.78. The UIF legislation changed a few years ago in that you can no longer claim if you resign. Your unemployment must be involuntary, ie retrenchment or dismissal. If you choose to be unemployed you are on your own. The amounts paid out also changed from 45% for everyone to a sliding scale ranging from 38% to 65% of your 'UIFable' salary depending on the level of your earnings and the period over which you had been contributing. In other words if you retrenched your domestic worker she would probably get 65% of her salary, while the proverbial 'captains of industry' would get 38% of the R12,478.00 maximum, the logic being that the more you earn, the more you should be able to look after yourself. NB: It is ESSENTIAL to keep your payslips (must be provided by law) in case you are ever asked to prove that you were contributing to UIF (or whatever other deductions are on your payslip). If you have an untrustworthy employer who has not paid over your contributions, at least you can still claim, and Labour will go after the employer.
Source: 25 years in payroll and employee benefits.
61 mths ago