Everyone has been waiting for this announcement (original expectations were that it was going to change effective 1 March). Payroll systems need to be updated for this month’s payroll runs. Payroll software providers have to make changes rather soon to avoid non-compliance.

Government Gazette No 44641 was issued on Friday 28 May 2021 confirming the new rate and its effective date.

The following communication was sent out by SARS:

Dear Valued Stakeholder

The Minister of Finance announced by notice in the Government Gazetted on Friday, 28 May 2021, that the contributions to the unemployment insurance fund must be determined on remuneration not exceeding R 17 712 per month.
• This increase is applicable to remuneration paid or payable by an employer to an employee during any month from 1 June 2021.
• The previous limit of R 14 872 per month was therefore only applicable to remuneration paid or payable by an employer to an employee for any month up to 31 May 2021.

All employers and payroll providers are requested to immediately implement the increased remuneration amount to ensure that the unemployment insurance contributions for June 2021 is correctly determined and paid not later than 7 July 2021.

Obtain the full Government Gazette (No. 44641) here.