UIF Distributing Less Money To Contributors

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The UIF plays a crucial role in offering temporary relief to individuals who have lost their income, enabling them to sustain their financial obligations. It was recently revealed that the scheme is paying less to its contributors. 


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The Unemployment Insurance Fund (UIF) has paid out more than R15 billion in UIF benefits to contributions during the last financial year. While this is significant, it is considerably less than the amount of money paid to contributors during the 2021/2022 financial year. 
 

FINANCIAL YEAR 2021/22

 

  FINANCIAL YEAR FINANCIAL YEAR 2022/23    

Number of successful UIF Applications

Number of unsuccessful UIF Applications

Expenditure

Number of successful UIF Applications

Number of unsuccessful UIF Applications

Expenditure

1 073 548

207 299

R22 599 302 590.69

982 124

185 284

R15 648 732 618.33

In 2021/2022 the UIF approved more than one million UIF applications. This cost the scheme more than R22,5 billion. During this time the UIF rejected 207,299 applications.

In the following financial year, the UIF approved just over 982 applications costing approximately R15.6 billion. 

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.

During 2022/2023 the UIF paid R15,648 ,732 ,618 in UIF benefits to contributors. Most of this was spent on distributing unemployment benefits. More than R12.4 Billion was spent on distributing unemployment benefits to contributors. 

While NSFAS distributed more than R12.3 billion in 2022/2023, this was approximately R3 billion less than the R14.9 billion paid in unemployment benefits during the 2021/2022. 

The UIF also spent less on reduced work time  benefits, illness benefits, maternity benefits, adoption benefits, paternity benefits and dependent benefits. 

Benefit payments to beneficiaries

2021/2022 Financial year

2022/2023 financial year

COVID

R4 534 768 051.07

R449 587 581.73

WABU

R14 148 233.36

R7 657 043.20

BEN-Unemployment 

R14 976 052 618.47

R12 417 076 372.27

BEN-Reduced Work Time

R294 161 421.79

R 321 199 678.30

BEN-Illness Benefits

R394 575 411.48

R395 953 173.85

BEN-Maternity 

R1 625 630 329.92

R1 503 523 855.80

BEN- Parental Paternity

R3 797 326.54

R3 352 519.75

BEN-Adoption

R465 723.40

R416 574.00

BEN-Dependants Benefits

R755 703 474.66

R549 965 819.43

Total

R22 599 302 590.69

R15 648 732 618.33

How UIF Benefits Work 

Every employed person working for more than 24 hours per month is required to make contributions to the UIF. The contributions made by employees are equal to one percent of their monthly remuneration.

Their employer contributes an additional one percent to the fund. 

This money accumulates over time and can be accessed if a person requires some financial assistance. 

The UIF uses a credit system to determine how long a person may claim benefits. This process is measured in days.

For every four days a person has worked, they receive one credit. The maximum amount of credits a UIF contributor can acquire is 365 credits/days. 

Suggested Article:

UIF office.

To help reduce the potentially devastating effects of not having an income, South Africa has an Unemployment Insurance Fund from which workers can claim for some time.

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