The Unemployment Insurance Fund (UIF) has recovered more than R100 million from non-compliant companies. This includes employers who deducted UIF contributions from employees but failed to pay them to the fund.
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.
UIF Commissioner Teboho Maruping says the fund will continue to visit companies that have registered and deducted contributions but not paid to the fund. The fund will also continue to penalise employers who fail to comply with legislation.
Just in one month they [UIF Staff] were able to recover about just over R100 million from different companies that have not been contributing
Failure to make paid employee UIF contributions can have damaging effects in the long term as individuals submitting UIF claims won’t be able to access benefits.
One individual revealed they worked for a company for around four years and was under the impression that UIF contributions were made. However, the fund cannot find the individual's details and will not be able to assist the claimant.
they can't find my name on the system, I’m not registered, hence I have been working for the company for close to 4 years
Latest SA Unemployment Figures Increase UIF Beneficiaries
Statistics South Africa (StatsSA) recently reported a 0.6 percentage point increase in the official unemployment rate, which now stands at 33.5%. This could lead to more people requiring the relief offered by the UIF.
Commissioner Maruping says in July 2024 alone, the fund received more than 80,000 UIF applications and paid out more than R1.4 Billion in UIF benefits.
Just over 80 to 100,000 applications for one month alone. We've already paid R1.4 billion in UIF claims that we’ve received so far. It already tells us that there's a potential of numbers starting to pick up
Maruping expressed concern regarding the increasing unemployment rate in the country and called for immediate action.
If there's no intervention in the unemployment crisis, the numbers will start to pick up to an extent where [the] UIF might not be able to stomach, even though we have the funds for the people that are contributing, but imagine people who have never been contributed for.
