{"id":21397,"date":"2019-11-25T06:15:51","date_gmt":"2019-11-25T06:15:51","guid":{"rendered":"https:\/\/ufilingguide.co.za\/?page_id=49"},"modified":"2019-11-25T06:15:51","modified_gmt":"2019-11-25T06:15:51","slug":"is-uif-calculated-on-gross-or-basic-salary","status":"publish","type":"page","link":"https:\/\/forms24.co.za\/data\/is-uif-calculated-on-gross-or-basic-salary\/","title":{"rendered":"Is UIF calculated on gross or basic salary?"},"content":{"rendered":"\n<p>UIF is Calculated on gross income.<\/p><div class=\"forms-atf\" style=\"margin-top: 15px;margin-bottom: 20px;\" id=\"forms-3144754446\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-9198760278752355\"\n     crossorigin=\"anonymous\"><\/script>\n<!-- Responsive ads atf -->\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-9198760278752355\"\n     data-ad-slot=\"8381596201\"\n     data-ad-format=\"auto\"\n     data-full-width-responsive=\"true\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div>\n\n\n<h2 class=\"wp-block-heading\">CALCULATING UNEMPLOYMENT INSURANCE FUND (UIF) CONTRIBUTIONS<\/h2>\n\n\n<p><br \/> 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.<br \/><br \/> The Unemployment Insurance Contributions Act, 2002 states the following:<br \/> \u201cSubject to subsection (2), the amount of the contribution payable in terms of section 5 \u2013<br \/> a) by an employee, must be one per cent of the remuneration paid or payable to that<br \/> employee by his or her employer during any month; and<br \/> b) by an employer in respect of any one of its employees, must be equal to one per cent of the<br \/> REMUNERATION paid or payable by that employer to that employee during any month.<\/p>\n\n\n<p><br \/> REMUNERATION means &#8220;remuneration&#8221; as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act, but does not include any amount paid or payable to an employee \u2013<br \/> (a) by way of any pension, superannuation allowance or retiring allowance;<br \/> (b) which constitutes an amount contemplated in paragraphs (a), (cA), (d), (e) or (eA) of the<br \/> definition of &#8220;gross income&#8221; in section 1 of the Income Tax Act; or<br \/> (c) by way of commission\u201d<br \/> Following from this, the Income Tax Act, 1962 (Act, 1962 defines &#8220;remuneration&#8221; as follows:<br \/> \u201cRemuneration&#8221; means any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument<br \/> pension, superannuation allowance, retiring allowance or stipend, whether in cash or<br \/> otherwise and whether or not in respect of services rendered, including&#8211;<br \/> a) any amount referred to in paragraph (a), (c), (cA),(d), (e), (eA) or (f) of the definition of<br \/> &#8220;gross income&#8221; in section one of this Act;<br \/> b) any amount required to be included in such person&#8217;s gross income under paragraph (i) of<br \/> that definition;<br \/> bA) any allowance or advance, which must be included in the taxable income of that person in<br \/> terms of section 8(1)(a)(i), other thani) an allowance in respect of which paragraph (c) applies;<br \/> ii) an allowance or advance paid or granted to that person in respect of<br \/> accommodation, meals or other incidental costs while that person is obliged to<br \/> spend at least one night away from his or her usual place of residence in the<br \/> Republic\u201d<br \/> and so forth &#8211; refer to the relevant act for more information<\/p><div class=\"forms-content\" id=\"forms-3251456593\"><div style=\"width: 300px; padding: 20px; margin: 0 auto; border: 1px solid #ddd; border-radius: 8px; background-color: #f9f9f9; text-align: center; font-family: Arial, sans-serif;\">\r\n    <p style=\"font-size: 16px; margin: 0 0 10px;\">Need Information or Confused about Something ? <\/p>\r\n    <a href=\"https:\/\/onlineapplications.co.za\/ask\/\" style=\"display: inline-block; padding: 10px 20px; background-color: #007BFF; color: #fff; text-decoration: none; border-radius: 4px; transition: background-color 0.3s;\">Ask a Question<\/a>\r\n<\/div>\r\n<\/div><div class=\"forms-btf\" style=\"margin-top: 15px;margin-bottom: 20px;\" id=\"forms-2501745923\"><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-9198760278752355\"\n     crossorigin=\"anonymous\"><\/script>\n<!-- Responsive ads btf -->\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-9198760278752355\"\n     data-ad-slot=\"5513273173\"\n     data-ad-format=\"auto\"\n     data-full-width-responsive=\"true\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/div>\n\n\n<h2 class=\"wp-block-heading\">More Information on UIF<\/h2>\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/forms24.co.za\/data\/can-i-claim-uif-online\/\">Can I claim UIF online?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/what-is-the-maximum-uif-payment\/\">What is the maximum UIF payment?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/when-can-you-claim-uif\/\">When can you claim UIF?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/can-i-claim-uif-if-i-resigned\/\">Can I claim UIF if I resigned?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/who-must-pay-uif\/\">Who must pay UIF?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/how-long-does-uif-take-to-pay-out-after-signing\/\">How long does UIF take to pay out after signing?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/does-uif-pay-lump-sum\/\">Does UIF pay lump sum?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/do-directors-pay-uif\/\">Do directors pay UIF?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/why-is-my-uif-claim-rejected\/\">Why is my UIF claim rejected?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/can-i-claim-uif-if-i-retire-south-africa\/\">Can I claim UIF if I retire South Africa?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/are-you-allowed-to-resign-with-immediate-effect\/\">Are you allowed to resign with immediate effect?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/can-i-claim-uif-if-my-husband-died\/\">Can I claim UIF if my husband died?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/how-much-uif-will-i-receive\/\">How much UIF will I receive?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/is-uif-taxable\/\">Is UIF taxable?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/is-uif-calculated-on-gross-or-basic-salary\/\">Is UIF calculated on gross or basic salary?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/how-long-does-maternity-benefit-take-to-process\/\">How long does maternity benefit take to process?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/how-many-months-does-uif-pay-for-maternity-leave\/\">How many months does UIF pay for maternity leave?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/\/how-is-uif-calculated\/\">How is UIF calculated?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/what-happens-to-my-uif-contributions-if-i-resign\/\">What happens to my UIF contributions if I resign?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/what-forms-are-needed-to-claim-uif\/\">What forms are needed to claim UIF?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/how-do-i-register-for-uif\/\">How do I register for UIF?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/what-is-the-retirement-age-in-south-africa\/\">What is the retirement age in South Africa?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/does-uif-expire\/\">Does UIF expire?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/is-uif-calculated-on-gross-or-basic-salary\/\">Is UIF calculated before or after tax?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/is-uif-paid-on-overtime\/\">Is UIF paid on overtime?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/does-bonus-have-uif\/\">Does bonus have UIF?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/when-should-i-apply-for-maternity-pay\/\">When should I apply for maternity pay?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/how-does-maternity-leave-pay-work\/\">How does maternity leave pay work?<\/a><\/li><li><a href=\"https:\/\/forms24.co.za\/data\/can-i-claim-uif-after-2-years\/\">Can I claim UIF after 2 years?<\/a><\/li><\/ul>\n<div class=\"forms-cpc\" id=\"forms-1957389253\"><hr>\n<h1>Did You Know : Top 15 Free Online Learning Platforms<\/h1>\n\n<ol>\n  <li>\n    <strong>Free Online Education Degrees : Coursera:<\/strong>\n    <p>Coursera partners with universities and organizations worldwide to offer a wide range of courses. While many courses are free, a fee is often required for certification.<\/p>\n  <\/li>\n\n  <li>\n    <strong>Free Online Education Degrees: edX:<\/strong>\n    <p>Founded by MIT and Harvard, edX offers high-quality courses from top universities and institutions around the world. 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It offers a free trial period.<\/p>\n  <\/li>\n<\/ol><\/div>","protected":false},"excerpt":{"rendered":"<p>UIF is Calculated on gross income. CALCULATING UNEMPLOYMENT INSURANCE FUND (UIF) CONTRIBUTIONS 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. &#8230; <a title=\"Is UIF calculated on gross or basic salary?\" class=\"read-more\" href=\"https:\/\/forms24.co.za\/data\/is-uif-calculated-on-gross-or-basic-salary\/\" aria-label=\"Read more about Is UIF calculated on gross or basic salary?\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-21397","page","type-page","status-publish"],"_links":{"self":[{"href":"https:\/\/forms24.co.za\/data\/wp-json\/wp\/v2\/pages\/21397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forms24.co.za\/data\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forms24.co.za\/data\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forms24.co.za\/data\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forms24.co.za\/data\/wp-json\/wp\/v2\/comments?post=21397"}],"version-history":[{"count":0,"href":"https:\/\/forms24.co.za\/data\/wp-json\/wp\/v2\/pages\/21397\/revisions"}],"wp:attachment":[{"href":"https:\/\/forms24.co.za\/data\/wp-json\/wp\/v2\/media?parent=21397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}