The Unemployment Insurance Fund (UIF) is a government-run fund that provides for workers in the short term while they are not able to work. This can be due to illness, injury, maternity or adoption leave. It can also provide relief to a worker’s family in the event of their death.
How does it work?
If you work more than 24 hours a month for an employer, the employer needs to register you for UIF. About 1% of your monthly salary will be deducted, and your employer will contribute another 1%. Should the need ever arise for you to claim from the fund, your payouts will be calculated based on how much you’ve contributed and for how long. If you’ve been contributing for four years or more, you can claim up to 238 days.
Otherwise, you can claim one day for every six days you’ve worked while contributing. Maternity leave benefits are capped at 121 days (17,3 weeks).
Who may claim?
Any unemployed worker can claim, but not if you work less than 24 hours a month for an employer, are a learner, a public servant, a foreigner, or if you work for commission. You are not allowed to claim from the UIF in any way, if you resign from your job.
Unemployment benefits
You will only start receiving benefits about eight weeks after registration, so rather do it sooner than later.
Illness benefits
Workers who have been ill and unable to work for more than two weeks may claim from the fund. Your claim may be denied if you refuse medical treatment. If you are too ill to submit your claim, you may nominate someone to do it on your behalf.
Maternity benefits
You may claim from the fund when you go on maternity leave. Find out about your employer’s policy regarding maternity leave before the birth. Some companies will pay you while you are on maternity leave, while others won’t. According to the law, employers are not required to pay you during your maternity leave. But if you don’t get paid while on maternity leave, you can claim from the fund if you have contributed to it for more than four months.
When should I claim?
If you’ve been retrenched or fired, you need to file your claim within six months from the last day of work. And you have six months from the birth of your child to claim benefits.
How can I claim?
To make a claim, you need to visit the Department of Labour. Depending on the benefit you are claiming, you will need to complete and provide a series of documents, plus your ID book or passport. Check the department’s website to see which documents you need.
How much will I get?
UIF payouts are calculated based on the salary a worker earned. If you earned less than R12 478 per month, you will get between 36% and 56% of your average salary. This percentage goes down if you earned more. There’s a fixed monthly benefit from R4 250 to R4 550 per month for workers who earned more than R12 478 per month.
A word of caution
Beware of companies that claim they can get money owed to you from the fund.
They will charge you a fee then simply disappear! Dealing with the UIF is free, and if you need help, contact Scorpion Legal Protection.
