The Unemployment Insurance Fund (UIF) is calling on its beneficiaries to ensure they submit claims with accurate information to prevent payment delays. Several factors, including selecting the incorrect province, can lead to a delay in UIF benefits payments.
The UIF plays a crucial role in providing short-term financial relief to workers facing unemployment or inability to work due to specific circumstances. This government-administered fund is designed to support employees and their families during difficult times.
Contributors submit claims to the UIF in several different circumstances. These circumstances include loss of income due to unemployment, illness leave, parental leave, adoption leave, reduced work time and maternity leave. The UIF also pays benefits to dependents of deceased UIF contributors.
The fund is now calling on individuals who submit claims to ensure they select the correct province when submitting a claim.
The UIF is appealing to clients who apply for benefits on uFiling to always choose the province they reside in.
They explain that not selecting the correct province has led to delays in UIF claim payouts.
Selecting the incorrect province causes delays in the assessment and payment of claims.
The UIF Payment Explained
If you work more than 24 hours a month, you are legally required to contribute to the UIF.
Each month, your employer will deduct 1% of your gross salary for the UIF and contribute an additional 1% on your behalf. This money accumulates, and you can claim UIF benefits if needed.
To calculate your entitled amount, follow these steps:
Step 1: Calculate Your Daily Remuneration
First, determine your daily remuneration. For instance, if your monthly salary is R4000:
- Annualise your salary by multiplying by 12
- R4000×12=R48,000
- Divide your annual salary by 365 (the number of days in a year):
- R48,000/365 = R131,51c
Step 2: Determine Your Pay Scale and Benefits
Depending on your salary, you will receive a percentage of your daily earnings. Lower-paid workers receive up to 58% of their daily wage. The higher your salary, the lower the percentage you will receive.
For example, if your daily earnings are R131.51 and you qualify for 58% benefits:
If you earned R131.51 daily and you are qualified to get paid 58% of this, you will receive R76.28c in daily benefits
R131.51 x 58 / 100 = R77.28 daily
The duration of your benefits depends on how long you have contributed to the UIF. Individuals who contributed more than 4 years to the fund are entitled to 365 days of benefits.
Those who contributed for less than 4 years will receive benefits based on the number of credits accumulated. You earn 1 credit for every 4 days worked.
