How Much Can I Claim Against UIF?

You probably have a sense that it has to do with claiming some type of compensation from the Government if you find yourself without a job? If that’s your guess, you would be correct. The Unemployment Insurance Fund (UIF) was set up 20 years ago with one purpose in mind – to make sure that employers and employees make regular monetary contributions towards the fund, so if employees find themselves without a job, they can claim against the fund.

In this blog post we are going to look specifically at the roles of the employer and the employee and when exactly you can claim against UIF.

If you have a business that employs people, you should read this post, and if you clock in at an office from 9 to 5 everyday, this is also important because hopefully you will never need to claim against UIF, but what happens the day you do?

On that day it would help knowing exactly how much you can claim, right?

First off, the Act which governs UIF is the Unemployment Insurance Act and it applies to all employers and employees except for:

  • Employees employed for less than 24 hours a month
  • Learners
  • Public Servants
  • Foreigners working on contract
  • Employees who receive a state pension
  • Commission earners

As an employer you have a legal obligation to register your business and your employees with UIF as soon as they start working. You also need to start paying your monthly UIF contributions over in the first month that your employee starts working.

How much are the UIF contributions each month?

The employer must take 2% of each employee’s monthly salary and pay it over to the fund (company picks up 1% and the employee pays 1%)

The good news is that there is a ceiling when it comes to UIF contributions. That ceiling is R14,872 per month. If you earn more than R14,827 per month, your UIF contributions will not be more than R148.72 per month.

Now that you know why the fund was set up and what you can claim for, let’s answer the big question.

What can you claim for?

As an employee, you can claim for the five events listed below:

  1. Unemployment benefits
  2. Illness benefits
  3. Maternity benefits
  4. Adoption benefits
  5. Dependent’s benefits

How much you can you claim?

To work out how much you can claim against UIF, you need to understand how the calculations work. The first step is working out what your daily rate of remuneration is:

  • If you are paid monthly, multiply your monthly salary by 12 and divide by 365

Here is a quick example:

Joseph earns R15,000 per month. What is his daily rate of remuneration?

R15,000 (monthly remuneration) x 12 (months in the year) / 365 (days in the year) = R493 per day

  • If you are paid weekly, multiply your weekly remuneration by 52 and divide by 365

Here is a quick example:

Nthabi earns R3,000 per week. What is her daily rate of remuneration?

R3,000 (weekly remuneration) x 52 (weeks in the year) / 365 (days in the year) = R427 per day.

Now that we have worked out what your daily rate of remuneration is, let’s find out why that step is important.

As an employee you are entitled to benefits which accrue at one day’s benefit for every six completed days of employment (limited to a maximum accrual of 238 days benefit in the four-year period preceding the date of application)

Yip we know that’s a bit of a mouthful, so let’s break that down into bite size pieces.

  • For every six days of employment you are entitled to a day’s compensation.

Let’s use another example to simplify this calculation.

Earlier in the post we mentioned that Joseph earns R15,000 a month and we established that his daily rate of remuneration was calculated back at R493 per day. For the sake of simplicity, let’s assume that Joseph has been working at his company for 200 days on the dot before falling ill and losing his job.

To work out his UIF claim, we need to divide the amount of days he has been employed by 6. Remember that you are entitled to one day’s benefit for every six days of completed employment.

200 (amount of completed days of employment) / 6 (the factor to used to determine your claim) = 33

We then take 33 and multiply it by Joseph’s daily rate of remuneration which is R493 = R16,269

Joseph has a claim for R16,269.

The only other thing you need to be aware of is that your claim is limited to 238 days of benefits which have accrued in the four years preceding your date of application.

Hopefully you found this article interesting?

Until next time.

The Wise About Life Team

 

52 Comments

      • Hi,i worked with the company for 13 years and was earning from R15952. 00 to R17940. 00 until i havr been retreched how much am i supposed to receive Uif.

        Reply
      • I’m any employee at jean park Chambers body coparete centurion 252.i like to as labour law to check for if I’m permanent at my work because my boss he being said to me I’m permanent but there’s no forms that I’ve signed on i now have four years now working since from 16/1/2017 until now so please labour law help me ????????

        Reply
    • If i resign from my current company and joined another company is my old contributions still safe for claiming if my contract expire with the new company?

      Reply
        • hall I’m Nico venter I just want to know how do u calculate your UIF if you get about R5600 a month and they take R38.80 every month from your salary for the UIF.

          Reply
        • Just want to know I resigned from my previous employer. 3years later started a new job, and then my contact was terminated after 2months. Will I still be available to claim UIF?

          Reply
    • I have found this information very interesting.if there is something that,I will like to ask in future.i won’t hesitate to pose a question.

      Reply
      • Hi Pule, thank you so much for sharing, we are glad that you found this information useful. Thank you so much for the support. Just drop us a message should you need any assistance.

        Reply
  • Hi I don’t understand coz wen we ask them how much wil we receive its not wat we get on a bank

    Reply
    • I’ve worked for different companies in the past 4 years and have always contributed to UIF. Unfortunately I’ve been retrenched from my current position. Will I be able to claim UIF INCLUDING my past contributions (Although they are not from one employer)?

      Reply
      • Hi Sash, thank you for contacting, unfortunately, we cannot offer you financial advice, please contact UIF department 012 337 1680

        Reply
  • Good morning
    How would I calculate the monthly UIF contribution I need to pay for my domestic worker who is paid according to the number of days worked in each month?

    Reply
    • Hi Chantel, thank you for your questions, unfortunately, we can’t offer financial advise as an insurance company, especially if it is personal. You will have to contact the UIF office on 0800 843 843, thank you.

      Reply
        • Please advise what is a time frame for claiming of. I have worked for several companies and I have never claimed once. Can I still claim uif from previous company now since I am not working

          Reply
          • Hi Gift, thank you for the question, however, we can not offer you any financial advice, we are not certified to do so. However, you can contact the UIF department 0800 843 843, thank you

  • Hi

    Much can i claim from UIF after working for 11 months, earning R20 000.00 before tax

    Reply
    • Hi Mike, thank you for your questions, unfortunately, we can’t offer financial advise as an insurance company, especially if it is personal. You will have to contact the UIF office on 0800 843 843, thank you.

      Reply
  • Hi

    Just a question, is the same formula used if I have 25 years(9126 days) in service working or is there a celling.

    Reply
  • How much will uif payout after working for 3 years getting 10000 a month

    Reply
    • Hi Clement

      Thank you for the question, however, we can not give you an exact amount. you will have to visit the UIF unemployment benefits department for assistance.

      Reply
    • Hi Elton

      Thank you for contacting us,

      Unfortunately, we cannot help you through the process, you can contact UIF unemployment benefits, and they can assist you, thank you.

      Reply
  • Hi Vincent
    Do I calculate correctly?
    Monthly salary R37 986 = R1248.85 per day
    Worked for 35 years –
    1460 days for 4 years divided by 6 = R243.33

    R1248.85 x 243.33 = R303 882 Optimistic!! can it be?

    If you take 238 days limitation must that be divided by 6?
    Or do you calculate 238 x daily remuneration.
    Would love your feedback

    Reply
  • Very well written article. Please could you advise is there a cap on payment on a claim. For example if you are earning in excess of R100k per month, would they still use the same formula as above but cap the amount.

    Reply
    • Hi Jeanette, thank you for your question, however, we can’t offer financial advise. You will have to contact the UIF office on 0800 843 843. Thank you

      Reply
  • Hi,

    I received R64920.44 and i have been a contributor for over 4 years.

    Will my calculation be as follows?

    64920.44*12/365 = 2134.37 a day.

    Limited to 238 days

    2134.37 * 238 = 507,980.21

    which I will receive over 8 months so 507,908.21/8 = 63497.53?

    Reply
  • I have been retrenched after working for the Company for 9 years and 6 months. I work 5 days a week. How do I calculate my UIF amount that will be paid and for how long can I claim?

    Reply
  • Hi.
    I have 100% commission earners on my payroll who do not attract UIF.
    – Do they still need to be registered if their monthly earnings are above the threshold and pay the capped amount?
    – (Silly question coming but you never know) If they are not contributing can they still claim benefits?
    – Can they choose to contribute in a personal capacity?
    Thank you

    Reply
  • I’m any employee at jean park Chambers body coparete centurion 252.i like to ask labour law to check for me if I’m permanent at my work because my boss he being said to me I’m permanent but there’s no forms that I’ve signed on i now have four years now working since from 16/1/2017 until now so please labour law help me ????????

    Reply
    • Hi Oupa, thank you for contacting us, and apologies for the inconvenience you’ve experienced. However, we cannot offer you any financial or labour advice. Please contact the department of labour on (011) 861 6130 / 31. Thank you

      Reply
  • Hi Busisiwe
    I have a few questions if I want to claim.
    I have worked for the come fof 11yrs and theh have been deducting UIF. I have a passport and a valid permit.
    How do I go about my claim.
    Please assist

    Thank you

    Reply
    • Hi Tapfuma, thank you for contacting us, unfortunately, I cannot offer you any advice regarding your claiming process. However, you can contact the UIF department to assist you 0800 843 843/0800

      Reply

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