The employment Insurance gives a limited relief to specific individuals in the form of monetary funds. This relief is eligible for workers who become unemployed due to various reasons like long term illness, adoption matters, maternity leave, paternal leave and dependents of the deceased ones.

The UIF, managed by the department of employment and labor, provides funds from the employers and employees. It is essential for the applicants to understand how these contributions work and the UIF benefits.

UIF contributions (how does UIF payment work?)

Both the employer and employee has to contribute to the UIF. The standard rate on which the contribution is done is 2%. The 2% is split evenly between both which is 1% each.

For example, if you earn R20000 a month then 200 will be deducted from this salary and will go to the UIF account, similarly R200 will be contributed by the employer to the UIF.

Note that there are strict implications by the Government to contribute in the UIF, if one fails to contribute without a valid reason then penalties may apply.

The section 5 of the unemployment insurance Contributions Act states that every individual whether it’s an employee or employer must contribute to the UIF if it applies to them.

If in case the employee works for 2 companies then the employer of both companies must also contribute. For example the employee gets R10,000 from each company then both company employers need to contribute R100 per month to the UIF.

Let’s say in case the employee loses both his jobs then he or she can claim the UIF , which means that they can claim 2 benefit payments as they worked for 2 companies and contributed.

UIF benefits

Amounts paid to the specific individuals are a relief for people without any work or are unemployed. This helps the needy to be able to afford their monthly rental, daily food and necessary medications.

There are many benefits for the employers if they contribute to the UIF. Some of these benefits include:

Compliance with law helps them to avoid potential penalties and legal issues or summons by the law departments.
The contribution may help to stabilize the economy of the country and reduce the negative impact unemployment has by providing necessary financial assistance.
Provides assistance to people struck by a huge loss allowing them to find new jobs and have time to redevelop themselves.

Claiming UIF

Before claiming UIF make sure that you are under the eligibility criteria. You can check your eligibility and document requirements by clicking here.

Online method Through uFiling

After gathering your required documents, register or log in to uFiling. If you are a new user then register by making a new account providing your personal details. Existing users can log in with just their username and password. Once you have logged in, follow the steps below for UIF claim online application:

Click on the “claims” section on the uFiling portal.
Choose your benefit type that you want to claim for example maternity benefit or illness benefit.
Upload all required documents related to your benefit type.
Click on submit and keep reviewing your application.
Your application will be sent to UIF and will receive a confirmation letter if the claim was successful.

Offline or in-person method

If you want to process your claim through an offline method then you need to visit the nearest labor center. You must have all the documents required for the process. You have to submit the forms listed below according to your criteria:

UI-2.4 for adoption benefits
UI-2.3 form for maternity benefits
UI-2.1 application for unemployment benefits
UI-2.2 for illness benefits
UI-2.8 to confirm for bank details

All these forms you can Download by clicking below Download Button.

The staff will let you know regarding the date and time of when you should come to get paid out if your application was successful. You can claim your money within 8 weeks of registering. You may come and visit the labor center to learn about it.

Who qualifies for UIF?

Remember that the Unemployment benefits were created to ensure that people who are no longer working or women on maternity leave can receive their benefits. So it is not possible for you to claim any benefit under the following conditions

You have Quit your job willingly.
You have been suspended from your job due to a misconduct
You are still getting benefits from a compensation work
Ongoing side jobs that pay you well
Fraument of the documents provided to the department

Can you claim UIF if you resign?

In South Africa you can not claim the UIF benefits if you have voluntarily resigned from your job. As we have discussed, it is only meant for people who lost their jobs involuntarily through no fault of their own, for example if the employer goes out of business. However there are some exceptions where you might still be able to claim your benefits even if you resign:

If in any case you are being harassed at your workplace and things become unbearable for you to still do the job. You will have to provide a sensible proof that staying for you was not a better option then you might be able to claim the UIF benefits.
If you have left your job voluntarily due to serious health conditions that made it impossible for you to work . But you will need to provide a valid doctor’s prescription and medical certificate to validate your benefits claim.
Another reason might be you moving out from the workplace with your spouse to a different location. This might be considered a valid reason for you to claim benefits.

Receiving UIF Payments

Once the UIF has approved your claim you can start receiving your money from the department of labor uif payments within 8 weeks time. Down below is UIF payout process:

Payments are made on monthly basis
When giving bank details make sure that the account details are correct for direct deposits in your bank.
You will receive notification or sms regarding your payment. The notification can come to your email as well.

Common UIF payment Queries

Delay in the payments: This happens due to errors in your documents or application. Make sure all your documents are accurate, also check the status of your claim on a daily basis. Once UIF claim approved, submit request for payment after 15 days.
Paid out the wrong amount: This is due to a mistake in how your payment was calculated. To tackle this, verify your details on the official portal of the uFiling system. You can also contact UIF support to correct any errors.
Payment missed: This happens due to the incorrect bank details provided. Double check your bank details and update it in your UIF profile.
Frequency of the payment: The payments are usually paid out every month after your claim is approved. Make sure you know how the uFiling continuation of payments work.
What is the maximum UIF payment: The Uif payments are calculated depending on the monthly salary of the last 4 years. The exact percentage of the payment to be paid out by UIF depends on your income. Those who earn less receive a higher proportion which is 60% of their salary and vice versa which is 38%. In 2024, uif calculates contribution by salary cap of R21,872 and the maximum monthly benefit you can get is R8,300 per month.
How to calculate UIF payment: Calculate your average income of the last four years. Use a salary cap of R21,872. If you have a higher income earner then use 38% benefit and if lower, use 60%.
For example, You earn 40,000 per month
Use the salary cap of 21872
You come under the category of higher earner so use 38% to calculate benefit

21872 x 0.38 which is 8305 benefit per month

uFiling continuation of payments

uFling continuation of payment is a process through which the claimants can keep getting their payments but they must regularly confirm their unemployment status in order to receive the benefits. Here’s a guide on how you can process the continuation of payments though the online uFiling portal.

Steps for uFling continuation of payment

Register or Log in to uFiling. If you haven’t registered then visit the official portal and follow the registration process. Make sure your personal details like ID number, contact number and your employment history. For old users just log in by providing username and password
Go to the “claims” section and select your active UIF claim benefit.
Find the option for “continuation of payment” or “confirm unemployment”
This process follows answering a few questions regarding your employment and steps taken to apply for a new job.
If all the information you provided is correct then the UIF department will review it and your continuation of payment will be approved. You can now start receiving your benefits.

Why uFiling continuation of the payment process required?

It is a process that is necessary for few purposes such as:

To verify the status of your unemployment. This ensures that the claimants are still unemployed and in dire need of it.
The process itself is build to prevent any frauds by requiring regular updates on your employment status
Keeps the system up to date with the terms and conditions of the UIF department.

Various factors that affect the payout time

One thing that may affect the time it takes for UIF benefits to be paid out is the complexity of the claim, whether all the necessary documents are completed and received. This factor can majorly influence the payment time.
Inaccurate information can cause delay in the payments, the department of labor uif payments may need to do further checks if necessary.
Don’t become too impatient and wait for at least 3 to 4 weeks for the claim after submitting your application. If it takes too long then contact the UIF office for details and the reason for the delay. These delays can be caused by the administration itself and may take between a few weeks or in some cases up to months depending on the accuracy of the claim.

Methods to Speed up the UIF Claim

Note that you can’t use both the offline and online platforms at the same time. We prefer that that claimant uses the online platform. If you are wondering how to check UIF status via phone then know that you can claim and check your application status by the help of any smart device, however, the manual method is particularly time consuming.
Use your current name instead of the previous one because in some cases if someone is married they must provide their new surname. Make sure your current surname is reflected in all your documents for a smooth process. A mismatch will always delay the UIF payment process.
Make frequent calls to the department to check the status of your application and ask them if anything is missing. This simple process can keep your claim active and the UIF department will keep your application in their minds.
If you are sending your documents repeatedly then you must not forget to send your salary schedule again as well because it is the most crucial part of your procedure.

How do i check my UIF balance online

Below is the process to check your UIF balance through an online portal.

Step 1: Log onto the official portal of uFiling.

Step 2: Navigate to the option of my balance in the “claims” section.

Step 3: Follow all the instructions that are displayed on the website.

Step 4: Now enter the verification code then proceed to enter your UIF reference number. Now you can view your balance and payment history.

By following these simple steps you can easily keep track of your UIF payment dates and its history. This makes sure that you have enough financial support you need in the time of crises like unemployment and other qualifying conditions.

FAQs:

The unemployment insurance fund in south Africa is a program that provides a short term relief for people who have lost their jobs mainly due to Maternity leave, adoption leave, long term illness leave and being a dependant of the deceased.

You can calculate your UIF in south Africa with the following steps:

You will need to check your payslip and see the amount deducted for UIF each month. Usually the amount deducted for the employee is 1% of the salary.
Add your contributions with the employer’s contribution which makes it 2% of your salary for the past year.
Now for the average monthly salary add all of your salary for 12 months and divide it by 12
Usually you receive 38%of your salary by UIF so multiply your average monthly salary by 38%
The result is your UIF benefit that you can receive every month.

It usually takes around 8 weeks to get approval of your benefit claim. The UIF department starts giving payment after 2 or 3 weeks of your claim approval.

Here are the simple and easy-to-understand method to fill your UIF salary schedule form:

Gather necessary details like your ID number and salary based on your past 12 months.
Fill out the employee detail section that contains your name , id number and UIF reference number if applicable.
Give out your salary information
Give employer details like contact information, employer name and Employer UIF reference number
Double check the information and submit your form . Follow up, if there are any issues the UIF will inform you regarding it.

It is a unique identifier number available on your payslips assigned to you by the UIF in South Africa to track your contributions and benefit. The reference number is also available on your UIF registration certificate after you have registered with UIF.

You will need the UI-2.3 form to apply for maternity benefits .

The UIF death benefit in South Africa is usually calculated based on the deceased person’s monthly salary and how they have contributed to the UIF in the past . The amount paid out depends on various factors which includes the period of time the deceased helped contribute to the UIF.

Conclusion

To conclude, Unemployment Insurance fund Payments are important aspects for the social security systems , providing support to the needy during the periods of unemployment, illness or parental leaves. In this comprehensive article we have explained the process of how the UIF payments work, its benefits and calculation of those benefits along with necessary precautions.

Remember that you must stay up-to-date on UIF contributions to ensure that you are included in the eligibility criteria for financial assistance in case you lose your job. Furthermore, you can always stay in touch with the UIF department helpline, they always extend helping hands in times of need.