How Does UIF Work in South Africa?
What is called UIF?
The Unemployment Insurance Fund (UIF) is formed by the Unemployment Insurance Act 63 of 2001 and the Unemployment Insurance Amendment Act 10 of 2016.
How does UIF work in South Africa?
The Unemployment Insurance Fund (UIF) provides workers with short-term relief when they become unemployed or are unable to work due to maternity, adoption, or parental leave, or illness.
Who qualifies for UIF payout?
Employees who have enrolled in and contributed to the Unemployment Insurance Fund (UIF) are qualified for UIF payouts.
How much must an employer pay to UIF?
The employer must contribute a total of 2% to UIF, with 1% contributed by the employee and 1% contributed by the employer.
When should UIF contributions be paid?
It must be paid within seven days after the end of the month from which the deduction was made.
How can I pay to UIF?
You can send your UIF contributions via the following payment methods:
1. eFiling
2. Electronic payments through the internet (EFT)
3. At a branch of one of the relevant approved banking institutions.
How do I file a UIF claim?
You must file a UIF claim at your nearest labour office or register and claim online.
How much will the UIF pay me?
The amount of UIF payments you will receive is determined by your monthly salary when you were employed. You will be paid a percentage of what you would have earned on a daily basis.
How can I calculate the UIF payout?
First, work out your daily rate of remuneration. For example, if you are earning monthly, multiply your monthly salary by twelve and divide by 365. Multiply the daily rate by 58% to know how much you will be paid daily.
