UIF Reduction Postponed
07 May 2015
In the 2015 Budget Finance Minister Nene announced a temporary reduction in UIF contributions for both employers and employees from a maximum of R148.72 to R10 per month for a one year period with effect from 1 April 2015. This was in order to provide support to the economy and was due to the fact that the UIF currently has a surplus of more than R72 billion.
During March the implementation date was postponed to 1 May 2015 and in a media announcement on 30 April this reduction has now been postponed indefinitely, until more consultation has taken place. The main concerns centre around the need to implement the UIF Amendments Bill tabled in 2014, to extend benefits to workers who contribute towards the Fund and the need to speed up engagement over the broader social security reform process.
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