South Africa: Can UIF and SDL be included as Part of Package?
UIF and SDL cannot be included as "Part of Package" as per the Labour Law.
Labour Law is interpreted to state that the typical rules around structuring an employee's package are:
- they must have a quantifiable cost value to the employer
- they must be paid regularly
- they must comply with the requirements of tax and labor law
- they must not be a statutory requirement/contribution by the employer
- they must not be performance-based or variable, like overtime, commission, performance bonus, etc.
- they should not be paid to allow an employee to work (allowance).
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