Changes to the unemployment insurance fund (UIF) rules in South Africa have an effective date of 1 March 2018.
The changes concern “learners” and employees who intend to repatriate (that is, return to their country of origin) at the end of their working period in South Africa (expatriate employees). The measures will require employers that have eligible learners and expatriate employees to amend their payrolls effective 1 March 2018, to include contributions to UIF for these individuals.
These individuals and their employers will need to contribute 1% of the remuneration paid by the employer to the employee. The employer therefore must remit a total contribution of 2% (1% contributed by the employee and 1% contributed by the employer). The contribution is capped at a maximum of R148.72 per month for employees earning R148.72 per month or more.
Read a March 2018 report [PDF 78 KB] prepared by the KPMG member in South Africa
© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.