Unemployment benefits are a necessity in today’s society where there is much instability as regards work and the ability of many citizens to earn a steady income. Many developed countries have some kind of safety net in place so that when a person is unemployed or out of work he is not left completely helpless, with no means of meeting his basic needs.
In South Africa, the UIF scheme (Unemployment Insurance Fund) was set up around 20 years ago as a means of helping workers put something aside so that if anything happened and they were unable to work, they would at least have something to fall back on.
In this article, I provide information on UIF Calculator to help you calculate your UIF benefits in South Africa, and know how much you are eligible to receive from the scheme. After reading this article you should be able to determine how much you are entitled to receive as unemployment benefits and payment Duration. Happy reading!
UIF Calculator – How to Calculate Your Unemployment Benefits In South Africa
The amount of money due to you is calculated based on how much you contributed to the scheme while you were working. Therefore, the first step in determining how much you can claim from the UIF is to know how much you earned daily. If you received a monthly salary then you may start by calculating how much your salary would be if you were to receive a daily wage. To do that, just multiply your salary by 12, and then divide by 365. That would give you an approximate figure representing your daily earning.
For example; if you earn R9,000 a month, then you just multiply R9,000 by 12 months = 108,000 and then divide by 365 (108,000/365)= R295.85 per day. As an employee, you are entitled to 1 day for every 6 days paid for.
In the example cited above, you can see that with a salary of R9,000 you are virtually receiving a daily payment of R295.85. If you have made the payment for 200 days while working, you would be eligible to receive the amount you get by dividing 200 days by 6.
R9,000 a month will give you 295.85 a day. 200 days divided by 6 =33. 33 multiplied by 295.85 will give us 9763.05 as your claim.
How to Calculate Your UIF Payment Duration
There you have it- that is just how to calculate your UIF benefit. If you earn a different figure from what has sampled here then all you need to do is replace the figure above with your actual salary. Then replace the 200 days with the actual amount of days that you have worked.
What you should know about the UIF Scheme
The UIF scheme makes payments based on the percentage of the salary you earned while working and contributing to it. The highest amount that can be earned is 58 percent of whatever amount you earned per day. Workers who received less than R12,478 per month will get 36-56 percent of their average salary received while they were working.
For example; a person who was receiving a monthly salary of R12,477 will expect to receive R145.05 a day which will amount to about R4412.02 every month, for about 9 months. That amounts to about 36 percent of what you were earning.
A higher salary will amount a higher percentage, and those who earn more than R12, 478 will earn a fixed amount of R4250-4550 per month.
How To Claim Your UIF
The process of making claims should not take more than 3 hours to complete. The law stipulates that you must make your claim within six months of your last day of employment. The first payment will then be made to your account within 2 to 4 days after the process is complete.
Employers are warned that they must not deduct any amount exceeding 1 percent of their workers’ salaries as payments towards the UIF contributions. There are very strict laws that spell out penalties for defaulters. Furthermore, anyone who is found to be receiving UIF money while being employed will be charged with fraud. It is important to remember that the UIF means Unemployment Insurance Fund and that this is a benefit put in place to help people who are not currently working.
To make a claim you can visit www.ufiling.co.za. From the home page, you then click on the activate my Ufiling account button, and then from there you can just follow the instructions as they appear on your screen. Thereafter you will be assigned a case number with which you can track the progress of your claim. Another option is to send an email to online.BCP@labour.gov.za.
Due to the ongoing pandemic which has brought countless businesses to their knees, UIF claims have now been expanded to include those who are still working but have had their hours reduced. However, this benefit cannot be claimed directly by the worker, the claims must be made on your behalf by your employer.
The amounts to be paid will be a percentage of your salary, and the maximum you can receive will be R6,730. All workers earning more than R17,702 will only get about 38 percent of their earning. The lowest earners can get as high as 60 percent, which is still going to be less than R6,730.
For the special UIF scheme for the pandemic, employers should go to the TERS platform, and then click on register their businesses on the platform. The UIF hotline for the pandemic benefit is 012 337 1997. It is a good idea to confirm with your employer that the business has been registered so that you can get benefits.
Please remember that this article on How to Calculate Your Unemployment Benefits in South Africa (UIF Calculator 2021) was written to provide general information only. This is not intended to cover all individual scenarios, nor does it take into account different individual circumstances. This article is not a replacement for professional advice or help. Before making any decisions we advise that you first consult with a professional, lawyer, or financial planner. We do not accept responsibility for any action you take after reading this article, or the consequences thereof. Every action that you take is strictly your responsibility.