remuneration level
21 June 2006
The Unemployment Insurance Fund (UIF) is expecting a flood of declarations
from employers in compliance with an increase in the maximum earning level of
benefits. There are currently more than one million employers registered with
the Fund.
Earlier this month, Minister of Labour, Membathisi Mdladlana announced an
increase in the remuneration ceiling to a level of R11 662.00 per month or R139
944.00 per annum or R2 691.23 per week to be effective as of 1 July 2006. This
represented a 12% increase on the current earning level of R10 966.00.
The Department of Labour wishes to remind employers to ensure that their
payrolls are adjusted to be in line with the new increased maximum earning
level of the UIF, which comes into effect on 1 July 2006.
Employers, who are legally bound to send this new information to the UIF
before the 7th of July 2006, are advised to submit this information at any of
the offices of the Department of Labour nearest to them.
On a yearly basis, the UIF sets out maximum rate of earnings or remuneration
ceiling for its benefits that provides a limit for the 2% contributions.
All workers who earn above the maximum level will only contribute up to the
maximum and when they become unemployed will then receive benefits at the rate
of their contribution.
The maximum earning level is benchmarked at the level of what an artisan is
currently earning. It was also aimed at keeping pace with the inflation
rate.
Between October 2005 and July 2006, the Fund had managed to put an extra R2
826.00 in the salary ceiling. This could only make the Fund more attractive to
both the low and high income earners.
By adjusting the annual contributory earnings, there was also a
corresponding increase in benefits to workers. This step further highlights the
importance that the fund places on improving the lives of the workers.
The 1 July increase was published in the Government Gazette on the 2nd of
June 2006.
Enquiries:
Kgomotso Sebetso
Cell: 073 2699 870
Mokgadi Pela
Cell: 082 8082168
Website: http://www.labour.gov.za
Issued by: Department of Labour
21 June 2006
