What you need to know about government's proposed changes to the UIF remuneration threshold
Think back to this year's 2015 Budget Speech. Do you remember Finance Minister Nhlanhla Nene proposing a reduction to the remuneration threshold against which your employees' contributions to the Unemployment Insurance Fund (UIF) are calculated? Do you remember him saying he wanted to reduce it from the current monthly amount of R14 872 to R1 000 for one year?
We bet you do.
After all, as Nene explained, this that change would draw down on the UIF's accumulated surplus which currently stands at more than R72 billion.
But what's happened to this? And do you need to make any changes to your employee's UIF payments.
A recent press release from the Ministry reveals the answer...
********** Urgent **********
The Labour Relations Amendment Act came into effect on 1 April 2015... Are you implementing the changes?
Now that the LRA changes are in effect you need to make sure you're fully compliant, and of course avoid massive lawsuits from employees and fines from the DoL!
Finance Ministry press release reveals Nene has extending the consultation period on the UIF proposal
According to a the ministry's press release, labour and business constituencies at NEDLAC have been consulting on Nene's UIF proposal since 27 February 2015.
And on the 4th of March, Nene extended an invitation for public comment on the proposal. Asking to get feedback by no later than 20 March 2015.
Since then, the National Treasury has processed 44 public comments, as well as comments received from NEDLAC constituencies.
That's where it hit a snag.
During the comment process, government received concerns from NEDLAC constituencies on the need to implement the UIF Amendments Bill to extend benefits to workers who contribute towards the Fund. It cited reason for this as the Bill being part of 'the broader social security reform process, and on the consultation process as it affects stakeholders.'
And that's why Nene's UIF threshold reduction proposal has been postponed.
The department has revealed that it's in the final stages of consultation this month and hopes to implement changes to the UIF remuneration threshold come 1 May 2015.
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