UIF or Unemployment Insurance Fund is a short-term relief for workers who are on maternity leave, adoption leave, off due to illness, reduced working hours or when workers become unemployed. Dependants of a deceased contributor may also claim UIF.
UIF is deducted at 1% of your monthly gross salary earnings not exceeding an amount of R177.12 and you employer also contributes 1% on your behalf.
UIF can be claimed for 12 months if you have full credit days. These accrue as follows: for every six days worked as a contributor you receive one day’s credit. Subject to a maximum of 12 months. Your application must be made within 12 months of termination of service. Benefits are payable from the date on which the contributor becomes unemployed.
If the employer terminates the services of the contributor or the service expires then benefits are payable. If you resign, then benefits are NOT payable.
You must register as a work-seeker with the department of labour.
The following will be required when applying for UIF Benefits
- ID document, card, passport, or asylum seekers permit
- Completed UI-2.8 form (banking details)
- Completed UI19 form
- Salary Schedule
- Registration as a work-seeker
- Completed UI 6A form (monthly)
- In case of voluntary severance package or early retirement, a UI 2.11 form is required
You may register on an online system called Ufiling where you can apply for your unemployment benefits. To do so you need to follow the steps below:
- Accept the terms and conditions
- Confirm your banking details
- Verify / Complete / Update your personal details
- Enter your occupation and qualification
- Confirm that you are a work-seeker
How much can you claim against UIF???
The first question everyone asks is how much they can claim back from UIF. Below is an example of how to calculate this:
- Calculate your daily rate of remuneration by multiplying your monthly salary by twelve and dividing by 365 days e.g. R10 000 per month = R120 000 per year = R328.77 per day
- You are entitled to benefits which amount to 1 days benefits for every 6 days of employment e.g. 200 days of employment = 33 days benefits
- 33 days benefits multiplied by R328.77 = R10 849.41 as your claim
The highest amount that can be paid is 58% of what you earned per day.
Workers who earned less than R17 712 will receive around 36-56% of their average salary for the four years they had been making the payments. Those who earn more than R17 712 per month get a fixed benefit of around R4 250 – R4 550 per month. The higher the amount, the lower the percentage.
If you have any queries, please contact our offices for assistance.
011 476 1112 info@wvdw.co.za
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