UIF Payments in South Africa
In South Africa, the Unemployment Insurance Fund (UIF) basically gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption and parental leave, or illness.
Who qualifies for UIF payments?
Basically, when your employer terminates your service, you can apply to the Unemployment Insurance Fund (UIF) for benefits. The benefits are only available to you if you have been contributing to the UIF while you worked. Bear in mind, you cannot claim if you have resigned, been suspended or absconded from work.
How UIF money is calculated?
Basically, UIF is usually calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer.
Does UIF pay you a lump sum?
Yes. The money can be paid out to the surviving spouse or children, and is usually paid out as a lump sum. The amount can be about R25 000, depending on the deceased’s salary and length of time employed.
What is the maximum UIF payout 2022?
After the increase, in the monthly maximum remuneration for the Unemployment Insurance Fund Contributions by The Minister of Finance, the payment went from R14,872 to R17,712 monthly. Which implies that the monthly UIF contributions per respective employer would now be limited to R177. 12 per month, up from R148. 72 per month.
How long does UIF first payment take?
On Average, the first payment will be made to your bank account two to four days after the process is complete. You must also claim within six months after your last day of employment.
How much will I get if I resign in South Africa?
Generally, bear in mind that upon resignation or dismissal, an employee is entitled to be paid the notice pay where applicable, salary up to last day worked, plus any outstanding leave pay.
Does UIF money expire if not claimed?
Provided you do not claim your UIF money, the Department of Labour transfers the money to an unclaimed benefit fund. Not to worry, you can still access your unclaimed fund with the proper process if you want to claim your expired UIF benefits.
