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Thread: UIF deduction from employees over 60

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    Bronze Member Beancounter's Avatar
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    UIF deduction from employees over 60

    Anybody knows whether employees over the age of 60 still have to contribute to UIF?

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    Platinum Member Mike C's Avatar
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    As far as I know there is no cut-off age.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    Bronze Member Beancounter's Avatar
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    Thanks Mike. Suspected as much.

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    As per Unemployment Insurance Contributions Act, No. 4 of 2002:

    Section 5(1)
    (1) Every employer and every employee to whom this Act applies must, on a monthly basis, contribute to the Unemployment Insurance Fund.

    Section 6(1)

    (1) Subject to subsection (2), the amount of the contribution payable in terms of section 5-

    (a) by an employee, must be one per cent of the remuneration paid or payable to that employee by his or her employer during any month; and

    Definitions:

    “employee” means any natural person who receives any remuneration or to whom any remuneration accrues in respect of services rendered or to be rendered by that person, but excludes an independent contractor;

    “remuneration” means remuneration 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-

    (a) by way of any pension, superannuation allowance or retiring allowance;

    (b) which constitutes an amount contemplated in paragraphs (a), (cA), (d), (e) or (eA) of the definition of gross income in section 1 of the Income Tax Act; or

    (c) by way of commission;

    Section 4(1)

    (1) This Act applies to all employers and employees, other than-

    (a) an employee and his or her employer, where such employee is employed by that employer for less than 24 hours a month;

    (b) an employee and his or her employer, where that employee receives remuneration under a learnership agreement registered in terms of the Skills Development Act, 1998 (Act No. 97 of 1998);

    (c) employers and employees in the national and provincial spheres of government; and

    (d) an employee and his or her employer, where that employee has entered the Republic for the purpose of carrying out a contract of service, apprenticeship or learnership within the Republic if upon the termination thereof the employer is required by law or by the contract of service, apprenticeship or learnership, as the case may be, or by any other agreement or undertaking, to repatriate that person, or if that person is so required to leave the Republic.

    Conclusion: Yes, the person has to pay UIF.

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