Today's Labour News

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southafricalogoBusinessTech reports that earlier this year the Minister of Labour announced an amendment to the “scale of benefits” described in the Unemployment Insurance Act and amendments then came into effect on 1 April.  

But according to Arlene Leggat of the SA Payroll Association (SAPA), there has been widespread confusion as to whether the change in benefits has led to an increase in contributions payable by employees as the wording is somewhat misleading.  She commented:  “The announcement uses the term: ‘scale of benefits’.  However, the figures mentioned are actually the limits of benefits to which UIF applicants are entitled, i.e. they can’t claim amounts above this ceiling.  The scale of benefits refers to brackets of income previously earned by a beneficiary and the corresponding percentage of that income they may claim at each level.  These brackets might not even be affected, and the articulation of the change could have been clearer.”  According to Leggat, UIF benefits have always been closely associated with UIF contributions, so it was natural for payroll practitioners to assume that changes to the first would have a direct impact on the latter.  “Therefore, many practitioners were led to believe that contributions must be included when, in fact, payroll is not affected at all.”  SAPA is awaiting an official clarification from the UIF.

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