Unemployment Insurance Fund Contributions – Remuneration Limit Increase

Effective 01 October 2012, employers must adjust their UIF contribution calculations to apply the new remuneration limit published by the Minister of Finance on 26 September 2012 (refer Government Gazette no 35715, dated 26 September 2012).

When calculating the 1% contribution deducted from employees and the 1% contributed by employers, a new annual remuneration limit of R178 464 should be applied. This means that employees earning R14 872 per month or more (R178 464 / 12) will now contribute a maximum of R148.72 and their employers will contribute an equal amount.

Currently the earnings limit is set at R12 478 per month (R149 736 /12) which means that employees whose earnings exceed the current limit will see a reduction in their net pay from October 2012 as their UIF contribution deduction will be slightly higher to accommodate the remuneration limit increase. Employers will see a similar effect as their portion of the UIF contribution increases to ultimately result in an increase in salary related expenses.

22 Comments

Filed under Evolution Payroll, Industry Information, Legislative Updates, Partner Payroll

22 responses to “Unemployment Insurance Fund Contributions – Remuneration Limit Increase

  1. Good day guys, nice article. But can you answer the vital question, wich quite apparently is not answered in this article: What update should I be on to implement the new changes? A lot of my clients are phoning me regarding this and want answers. Thanx again!

    • Madelein van der Watt

      Hi MJ

      If you are currently using Pastel Payroll 2013 Update 2c, you will be able to update the UIF limit manually after closing your September payroll.

      Please ensure that you apply this change only in the first processing period of October 2012 to prevent your contributions prior to 01 October 2012 from being amended. You can access Setup…Calculation Totals and amend the Constant value of “Total 17 – UIF Income” to reflect the new annual limit of R178 464.

      You should only apply the change manually if you are using Pastel Payroll 2013 Update 2c or later and you urgently need to process a payslip for October 2012.

      If you are able to wait a day or two before you need to process your first payslips for October 2012, I would suggest you rather install the latest upgrade that will automatically take care of the UIF remuneration limit increase for you. Pastel Payroll 2013 Update 2e will be available as a Frictionless Update or to download from http://www.pastelpayroll.co.za before the end of this week.

  2. Hesme

    Hi there,

    I have done a update to 2e, but my UIF limit is still set at R124.78. Looks like I have to change them all manually

    • Hi,

      Please note that you will need to run a Legislative Upgrade from the File Menu.

      Please make sure you run a backup before you do this.

      Regards,

      Philip Meyer

      • Pete Beart

        and yes or no to to the “affect transaction calculation totals” ???? doing wages NOW! cant sit n wait another two hours for a free support person by phone.

        ever thought of giving instruction with the many updates,? it might give the client the feeling they are getting something for the support money they pay, after having to check every week for updates manually because we don’t get the news letters we pay for. or the news letters we get gives miss-leading info.

        I might just prevent the lines being jammed with “unusually large call volumes” ….

        urgent response required please.

        P. Beart

      • Maritsa

        Dear Pete

        Thank you for the suggestion regarding support instructions on the update, we will look into this as it is our aim to enhance Payroll’s ease of use. Your details have been forwarded to our technical team to assist you with your query. Please inform us if you still have any outstanding queries.

        Regards

        Maritsa

  3. Karina

    Hi. I have been trying to do a Legislative release upgrade, but I keep getting the following error: Runtime error ’70’: Permission denied

    • Maritsa

      Dear Karina

      If this is a standalone computer then please go to c:\payroll and right click on C:\Payroll and then select “Properties”. Please take all ticks off from “Read Only” and then say “Apply” and then “OK”.
      If this on a workstation then please do the same on the server’s payroll directory and also make sure that you have full rights to the payroll directory on the server.

      Regards

      Maritsa

      • Karina

        Hi Maritsa

        Pastell Payroll’s IT Technician fixed the proplem via Remote Access Control. It seems that there was some sort of glitch/error in the program itself.

        Thanks

        Karina

  4. Jade

    Hi guys,

    Just wondering what official notification we are supposed to receive of this increase in the contribution limit.
    I received absolutely nothing from SARS or UIF. Not even an update on u-filing.
    Stumbled across this thread while checking out the ROE for 2013!
    Thanks

    Jade

  5. patrick

    Pls can you tell me the new rate for grade c from 1 september 2014

  6. Steven

    Can you please tell me about september 2014 new security rates for gauteng.

  7. Workmen’s Compensation: Is there a maximum notch for companies to pay? Say a company’s salaries total to R10 million. Does the company contribute on the total R10 Million or only to a maximum of say R5 Million?
    Do specific notches exist? Thank You

    • Madelein van der Watt

      Hi Peet

      There is a maximum. The limit is applied to the annual salary of each individual. For 2013/2014, annual remuneration up to R312 480 must be included per individual. For 2014/2015, the maximum amount is R332 479

      Regards

      Madelein

      • Madelein,
        Thanks very much for your reply. I really appreciate it. Just to follow up:
        On the documentation that the company provide to the Department of Labour for assessment, do we fill in the actual salary of say R 500 000 for the individual or just the maximum of R 332 479?

      • Madelein van der Watt

        Hi Peet

        You only need to submit the maximum amount and not the actual value in the instance where it exceeds the limit.

        Regards

        Madelein

      • Madelein,

        Thank you very, very much.
        Have a nice day.

        Peet

      • Môre Madelein!

        Jammer om weer te pla, maar is daar iewers ‘n webtuiste of ander dokument waar ek die syfers kan vind? Ek moet die syfers terugwerk tot 2008!

        Dankie weer vir jou moeite.

        Peet

  8. Lizette

    Hi, would like to know, if you take your annual bonus in portion, is the paye the same, as if you take the full amount at the end of the year.

    Thanks

    Kind Regards/ Vriendelike Groete

    Lizette Grobbelaar

    Johan Durr Inc

    P O Box 1561

    Durbanville

    Tel (021) 975 6075

    Fax (021)975 6081

    Email: lizetteg@johandurr.com

    Unit 4, Queen Street Chambers

    33 Queen Street

    Durbanville

    7550

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