If you are earning monthly, multiply your monthly salary by twelve and divide by 365.
As an employee, you are entitled to benefits that amount to one day’s benefit for every six days of employment. In the above example, we found out that with a salary of R10,000, you have a daily remuneration of R328.
Below is How To Calculate UIF Payout In South Africa
The first step of knowing how much you can claim is by working out your daily rate of remuneration. If you are earning monthly, multiply your monthly salary by twelve and divide by 365.
For example, if you earn R10,000 a month, then your daily remuneration will be 10000 (salary) * 12 (months per year) / 365 (days a year) = R 328.77 per day As an employee, you are entitled to benefits which amount to one day’s benefit for every six days of employment.
In the above example, we found out that with a salary of R10,000, you have a daily remuneration of R328.77. Now let us assume that you have been making the payment for 200 days when you were working.
To work out this claim, you divide the number of days you have been employed by 6. Example:
200 days/6 = 33
Take the 33 and multiply it by your daily remuneration, which is 328.77.
You will get R10849.41 as your claim.
The UIF payout system makes payments in the percentage of the salary you earned while contributing to it.
The highest amount that can be paid is 58% of what you earned per day.
Workers who earned less than R12,478 will receive around 36-56% of their average salary for the four years they had been making the payments. For example, if you were earning an average of R12,477 in a month, according to the UIF calculation, you can expect to receive R 145.05 a day, which will amount to approximately R4412.02 monthly for about nine months.
This is about 36% of what you were earning.
Those who had earned more than R12,478 per month will get a fixed benefit of around R 4250- 4550 per month. The higher the amount, the lower the percentage.
How is UIF calculated in South Africa?
UIF is calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer.
The total UIF contribution (employee + employer) must be paid monthly based on the amounts contained in the EMP201 and UI-19.
Is UIF calculated on gross salary?
The calculation of UIF is not a simple matter of applying 1% to the gross pay of an employee.
The calculation of the amount of income that is subject to UIF is set out in the UIF Act and the Income Tax Act.