Home Funding How to Claim an Amount against UIF 2021

How to Claim an Amount against UIF 2021

“A day unemployed is like a bagel- even when it’s bad, it’s still pretty good…” ― CrimethInc., Evasion. 

Unemployment is the scourge that has marred the ubiquitous nature of merriment across the globe, raging like an unrestrained, rampant chimaera. It has been a source of bereavement for multitudes and makes landfall owing to a galore of reasons, of which coronavirus has been the latest and recurring cause.  


Unemployment Insurance Fund (UIF) is a department of the South African government that saw its genesis around twenty years ago and was created with the goal of mitigating the troubles of the unemployed across the country. The mechanism of the fund imbues a sense of responsibility in the employers and employees of making regular donations to the fund. It works as a fail-safe strategy for life insurance in worst-case scenarios wherein employees can find themselves unemployed so that these unemployed employees can make a claim against the fund. Even an illness or pregnancy approves the eligibility of the employee to access the fund. The Department of Labour provides a calculator that shows the amount that is allocated to an employee based on the contributions that they have been making in the fund.  

The amount is based on the monthly salary that was conferred upon the employee during the course of their employment. Employers siphon-off 1% of the monthly salary — exclusive of commissions — of an employee and deposit it in the fund. In addition to the 1%, the employer should contribute another 1% for every employer they have, making the total contribution to the fund 2%. For instance, if a labourer earns R2000 a month, then the employee has to deduct 1% of the salary, which is R20, and also, the employer has to pay an extra R20 for the worker. Therefore, the total amount paid to UIF South Africa becomes R40. If a labourer surpasses the ceiling of their salary, be it monthly or annually, they have to contribute to the fund as well.  

Furthermore, a labourer can claim up to 238 days if contributions have been made for four consecutive years. If contributions were made for less than four years, a labourer could claim one out of every six days. The UIF rates are determined by a scale of benefits that range between 3060% of your salary for the first 238 credit days and another flat 20% from 239 days to 365 credit days. Low-income earners receive a higher UIF percentage.  

The Computation Process 

Square one of the calculation, deciphers the daily rate of remuneration. The salary is multiplied by 12 and divided by 365, i.e., (salary x 12 months) / 365 days. The answer gives the daily income of the labourer.