Quick Answer UIF vs PAYE: What's the Difference? PAYE is income tax: deducted from the employee’s salary per the SARS tax tables and paid to SARS – the employee’s own tax. UIF is unemployment insurance: 1% deducted from the employee plus 1% paid by the employer, funding benefits if the employee loses their job. Both ride on the monthly EMP201. What this means in plain language On the payslip they sit side by side, which is why they get confused. PAYE varies with salary (0% below the threshold, up to 45%); UIF is a fixed 1% + 1% capped at R177.12 each. They also answer different questions. PAYE settles the…