The Unemployment Insurance Fund (UIF) provides short-term relief to employees who lost income due to circumstances that may have prevented them from going to work.
This includes relief for employees who took maternity leave, illness leave, parental leave and leave when they adopted a child.
To qualify for UIF benefits, employees must have contributed to the fund and built up credits.
Every month, 2% of a worker's monthly remuneration must be contributed to the UIF. The employer will contribute 1% while the employee will contribute the remaining 1%.Over time, these contributions build up credits. The more credits you have, the longer you will be able to claim benefits from the UIF.
Here’s How Maternity, Illness, Parental And Adoption Benefits Are Calculated
The daily benefit amount that a UIF contributor is entitled to is equal to 66% of income. This amount is capped at R17 712 per month. However, daily income is not limited to the ceiling amount.
Here’s an example for an individual who earns R30 000 a month.
Daily Income is calculated.
R30 000 x 12/365 = R986.30 per day
Leave income
R25 000 x 12/365 = R821.92 per day
Top-up = the difference between daily income and the leave income
R986.30 - R821.92 = R164.38 (difference)
The difference is what will be paid to you as the UIF contributor.
It's important to note that where the difference is more than the daily benefit amount, the difference is paid. Where the difference is more than the daily benefit amount, the daily benefit amount is paid.
