The South African Ministry of Finance has launched a public consultation for a temporary reduction in Unemployment Insurance Fund (UIF) contributions. As proposed in the 2015 Budget, the monthly basis cap would be reduced from the ZAR 14,872 to ZAR 1,000, but would not affect benefits. Both the employer and employer are obligated to contribute 1% of the monthly wage/salary to the fund. If the change is adopted, the contributions reduction would draw down on the UIF’s accumulated surplus of over ZAR 72 billion. The reduced basis cap would apply from 1 April 2015, and would be reconsidered for the...