How The UIF Calculates Reduced Work Time Benefits



Being forced to work reduced hours or being put on “short-time” can be extremely difficult as you will earn less money while your expenses remain the same. The Unemployment Insurance Fund (UIF) helps subsidise the income of these workers.




The Unemployment Insurance Fund (UIF) provides short-term financial relief to individuals who have lost income due to a range of circumstances. This includes people who have reduced work time or having to completely stop work, which results in them earning less money. 

To qualify for the UIF reduced work time 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 be responsible for contributing 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.

During the Covid-19 pandemic the UIF reduced work time benefits were changed to a top up benefit. However, due to the lifting of the state of disaster, it will be converted to a benefit amount. 

Here’s How Reduced Work Time Benefits Are Calculated

The UIF will first calculate your daily benefit amount. This is because the daily benefit amount is used as a term in the calculation of your top up benefit. 

Top Up = difference between Reduced Work Time Income and daily benefit amount 

If your daily benefit amount is R221.28 and your reduced work time income per day is R98.63, the difference between these amounts is what you will be paid. 

R221.28 - R98.63 = R122.65 per day. 

It's important to note that where the difference is less than the daily benefit amount, the difference is paid. Where the daily income from continued employment is more than the benefit amount, the claim will be rejected. 





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