Unemployment Insurance Fund: Explainer
Please note! The information below applies to applications for normal UIF benefits only, and does not apply to the COVID-19 Temporary Employee / Employer Scheme. To make an application for normal UIF benefits during the lockdown, you can apply for UIF benefits by registering and filing online through the UIF online filing system.
What is the Unemployment Insurance Fund (UIF)?
The Unemployment Insurance Fund (‘UIF’) is established by the Unemployment Insurance Act, and provides short-term relief to workers when they become unemployed or are unable to work because of maternity, paternity, or adoption leave, or illness. It also makes provision for the dependents of a deceased worker, or for the loss of income due to reduced working time in certain cases.
Eligible workers in South Africa are required to register with and contribute to UIF on a monthly basis. Contributors to UIF who become unemployed or are unable to work can apply for: unemployment benefits; maternity benefits; paternity benefits; illness benefits; adoption benefits; and, dependant benefits (in the case of death of the contributor).
This explainer provides general information on UIF and accessing its benefits. For further information you can visit the website of the Western Cape Government or the Department of Labour, contact the Client Service Centre of the Unemployment Insurance Fund (toll free, 0800 843 843), or speak to an official of the Department of Labour at your nearest Labour Centre.
Who contributes to UIF, and how much is contributed?
The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers (including domestic workers), all of whom should contribute to UIF. However, the following workers do not have to make contributions to UIF: workers working less than 24 hours a month for an employer; learners; public servants; foreign nationals working on temporary contract; workers who get a monthly State (old age) pension; or, workers who only earn commission.
The following people must contribute to UIF when formally employed (unless excluded as above):
All persons lawfully employed in South Africa, such as:
- South African Citizens with a 13-Digit ID,
- Refugees with a Refugee Certificate or Refugee ID issued in terms of the Refugees Act,
- Asylum seekers with an Asylum Seeker Permit or Visa issued in terms of the Refugees Act; or
- Foreign nationals with valid passport/permit or 13-Digit ID (in the case of permanent residents).
As a worker, 2% of your monthly salary must be contributed to UIF. Your employer must contribute 1% and you must contribute 1%. This should be deducted from your monthly salary, and should be reflected on your pay slip. Every employee has the right to a pay slip and a written contract.
If you are not sure if you or your employer are supposed to pay contributions to UIF, speak to an official of the Department of Labour at the nearest Labour Centre.
Who can apply for benefits from UIF, and under which circumstances?
Any worker who has made contributions to UIF may apply for benefits when they become unemployed or are unable to work because of maternity, adoption leave, or illness. In the case of a deceased worker, the dependents can apply for benefits. The application would then have to be processed by the Department of Labour. In order to be eligible for benefits, you must meet certain criteria or circumstances. These include the following, displayed on this table:
Who can apply for benefits from UIF, and under which circumstances?
Any worker who has made contributions to UIF may apply for benefits when they become unemployed or are unable to work because of maternity, adoption leave, or illness. In the case of a deceased worker, the dependents can apply for benefits. The application would then have to be processed by the Department of Labour. In order to be eligible for benefits, you must meet certain criteria or circumstances. These include the following, displayed on this table:
Who can apply for benefits from UIF, and under which circumstances?
Any worker who has made contributions to UIF may apply for benefits when they become unemployed or are unable to work because of maternity, adoption leave, or illness. In the case of a deceased worker, the dependents can apply for benefits. The application would then have to be processed by the Department of Labour. In order to be eligible for benefits, you must meet certain criteria or circumstances. These include the following, displayed on this table:
