ceiling
30 June 2006
Employers will be required to ensure that they comply with the announced
increase in the maximum earnings level, which comes into effect tomorrow, 1
July 2006.
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. The
department has warned employers that failure to comply with these provisions of
the Act constituted an offence, which was punishable in terms of the Act. The
offender shall be liable to a fine or imprisonment, or to both a fine and
imprisonment.
The UIF on a yearly basis sets a maximum earnings ceiling, in terms of which
benefits are paid and contributions are payable.
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 2 June
2006.
Enquiries:
Kgomotso Sebetso
Cell: 073 2699 870
Mokgadi Pela
Cell: 082 808 2168
Issued by: Department of Labour
30 June 2006
m<OED>
