Understanding the Unemployment Insurance Fund (UIF) - When can you claim?

Sep 19, 2024 2:35:38 PM

"Every employer must deduct 1% of their employees' salaries (excluding commission) and contribute an additional 1%, making a total of 2% of the employee’s wage, to the UIF. "

Understanding the Unemployment Insurance Fund (UIF)

By Jessie Taylor

The Unemployment Insurance Fund (UIF) provides essential financial support to workers in South Africa when they face unemployment or cannot work due to illness, maternity leave, adoption leave, or other reasons.

The UIF was created to offer short-term financial relief to workers and provide dependents' benefits to the family of a worker who has passed away. It also offers assistance to dependents of deceased contributors. It ensures that workers and their families are financially protected during challenging times.

Employers are responsible for ensuring their employees are registered with the UIF and that their contributions are regularly paid. If employees are registered and contributions are up to date, they can claim when they need financial assistance.

Every employer must deduct 1% of their employees' salaries (excluding commission) and contribute an additional 1%, making a total of 2% of the employee’s wage, to the UIF. This contribution is mandatory for most employees, including domestic workers, provided they work more than 24 hours a month for the same employer.

However, there are some employees whose employer is not obligated to pay UIF. These include:

Employees who work less than 24 hours a month for an employer
Learners participating in learnerships under the Skills Development Act
Public servants
Foreigners working on a contract basis
Workers who only receive commission-based earnings
Those receiving government old-age pensions

Employers are required by law to deduct these contributions and ensure timely payments to the UIF. The contribution must be paid even if the employee does not need to claim immediately, as it serves as a safety net for future unforeseen circumstances.

Claiming UIF benefits is relatively straightforward, but there are certain steps that claimants must follow to ensure a successful application. Whether claiming unemployment, illness, or maternity benefits, applicants must visit their nearest Labour Office or register and claim online. Each type of benefit has specific forms and documentation requirements that must be submitted.

Workers who have contributed to the UIF and meet the eligibility requirements can claim the following benefits:

Unemployment Benefits:

You can claim unemployment benefits if you have been dismissed, retrenched, or if your employment contract has expired. However, you cannot claim if you resigned voluntarily or if you were suspended for misconduct.

To claim unemployment benefits, you need to:

- Register as a work seeker at your nearest labour centre.

- Provide the necessary documents, including your identity document, proof of employment termination, and registration forms.

- Return to the labour office every four weeks to sign the unemployment register to show that you are still seeking work

You should start receiving payments within eight weeks of registering. Payments will continue every four weeks until all benefits are used up or you find employment.

Illness Benefits

If you are unable to work due to illness for more than seven days, you can claim illness benefits. These benefits are only paid for the period you are booked off work by a medical professional and only for the time you are not receiving normal wages from your employer.

To claim illness benefits, you will need:

- A copy of your identity document.

- A statement from your employer detailing your earnings during the illness period.

- A medical certificate from a doctor stating that you are unable to work.

You cannot claim illness benefits if your illness was caused by your own misconduct, if you refused reasonable treatment, or if you failed to follow your doctor’s instructions.

Maternity Benefits

Expectant mothers can claim maternity benefits from the UIF while on maternity leave for a period of 17 weeks. In the unfortunate event of a miscarriage or stillbirth, you may claim benefits for up to six weeks after the event.

To claim maternity benefits, you must:

- Provide a medical certificate confirming your pregnancy and the expected date of birth.

- Submit copies of your payslips and information provided by your employer, along with completed UIF forms.

Fathers can also claim up to 66% of their earnings from the UIF during their paternity leave, which was introduced to provide support during the early days of a child's birth.

Adoption Benefits

If you legally adopt a child younger than two years old and take adoption leave to care for the child, you can claim adoption benefits. Only one of the adoptive parents may apply for this benefit.

To claim adoption benefits, you must provide:

- A copy of the adoption order.

- Your identity document.

- Payslips and proof of employer registration with UIF.

- A statement of the amount you have received from your employer during the adoption leave.

Dependants Benefits

The spouse or minor children of a deceased worker who contributed to the UIF are entitled to claim dependants' benefits. The application must be submitted within six months of the worker’s death.

To claim dependants’ benefits, you will need to provide:

- The death certificate.

- Your marriage certificate (if you are the spouse) or the child’s birth certificate (if claiming as a minor).

- Proof of your relationship with the deceased and your dependence on them.

Dependants can claim the equivalent of the deceased's unemployment benefit, which is paid out in one lump sum.

The Unemployment Insurance Fund serves as a crucial lifeline for workers during periods of financial hardship, whether due to unemployment, illness, maternity leave, or adoption leave. It is funded by contributions from both employers and employees, creating a safety net for workers when unexpected events arise. Claiming from the UIF ensures that workers can maintain some financial stability during times of transition, illness, or family changes.

Read the September edition of Public Sector Leaders

Sources:

Department of Labour | Law for All | Western Cape Government