UIF explained

Who pays and how much

Most employees in South Africa contribute to the Unemployment Insurance Fund (UIF), including domestic and farm workers. Each month 1% of your gross pay is deducted, and your employer adds another 1%. Both contributions are worked out on pay up to R 17 712 a month, so the most you pay is R 177,12 a month. People who work fewer than 24 hours a month for an employer, and some learners and public servants, are not covered.

What UIF pays for

• Unemployment: when your job ends through dismissal, retrenchment or the end of a contract. Resigning normally does not qualify.
• Illness: when you are too ill to work for more than 14 days and are not paid in full by your employer.
• Maternity: up to 17.32 weeks, paid at a flat 66% of your income up to the ceiling.
• Parental, adoption and commissioning-parental leave, and a dependant’s benefit if a contributor dies.

How much you get

For unemployment benefits, UIF first works out your daily income: your monthly pay, up to R 17 712, times 12 and divided by 365. It then applies an income replacement rate, which is close to 60% for the lowest earners and falls to 38% at the ceiling, using a sliding formula in the Unemployment Insurance Act. You are paid at that rate for up to 238 days, and at 20% for any further days you have credit for.

Credit days

You earn one day of benefit for every four days you worked and contributed, up to 365 days in the four years before you became unemployed. If you claimed earlier in that four-year period, the days already paid are subtracted. Benefits are not taxed.

How to claim

1. Ask your employer for a completed UI-19 form, which confirms your dates of employment and earnings.
2. Apply online on the Department of Employment and Labour’s uFiling system, or at a Labour Centre, within 12 months of becoming unemployed.
3. Have your ID, bank details and recent payslips ready.
4. Keep your claim active as instructed, for example by confirming every month that you are still unemployed.

Frequently asked questions

Is UIF deducted from every payslip?

Yes, for employees who work more than 24 hours a month. The deduction is 1% of gross pay, up to R 177,12.

Can I get UIF if I was dismissed?

Yes. Dismissal, retrenchment and the end of a fixed-term contract all qualify. The reason for the dismissal does not stop a claim.

How long does a UIF claim take?

It varies. Make sure your employer has declared you correctly on uFiling, because missing records are the most common cause of delays.

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