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Guidelines for Employees

(adapted from the UIF website www.uif.gov.za)

When you apply for benefits, you should bring the following documents to your nearest Employment Office:

Unemployment benefits

  1. Copy of 13 digit bar-coded identity document
  2. Copy of your last 6 payslips
  3. Information supplied by employer(UI18)
  4. Information supplied by the employer as per the requirement by the South African Revenue Services(IRP 5) or IT 3(a).
  5. Proof of registration as a workseeker
  6. A fully completed registration form.

Your claim for benefits cannot be finalized until all the relevant information is supplied

When you apply for benefits, you should bring the following documents to your nearest Employment Office:

Illness benefits

  1. Copy of 13 digit bar-coded identity document
  2. Copy of your last 6 payslips
  3. Information supplied by employer(UI18)
  4. Information supplied by the employer as per the requirement by the South African Revenue Services(IRP 5) or IT 3(a).
  5. Complete medical certificate
  6. Proof of banking details
  7. Statement of amount received from employer during period of illness
  8. A fully completed registration form.

Your claim for benefits cannot be finalized until all the relevant information is supplied.

When you apply for benefits, you should bring the following documents to your nearest Employment Office:

Maternity benefits

  1. Copy of 13 digit bar-coded identity document
  2. Copy of your last 6 payslips
  3. Information supplied by employer(UI18)
  4. Information supplied by the employer as per the requirement by the South African Revenue Services(IRP 5) or IT 3(a).
  5. Complete medical certificate
  6. Proof of banking details
  7. Statement of amount received from employer during maternity leave.
  8. A fully completed registration form.

Your claim for benefits cannot be finalized until all the relevant information is supplied

Adoption benefits

  1. Copy of 13 digit bar-coded identity document.
  2. Copy of your last 6 payslips.
  3. Information supplied by employer(UI18).
  4. Information supplied by the employer as per the requirement by the South African Revenue Services(IRP 5) or IT 3(a).
  5. Order of adoption.
  6. Proof of banking details.
  7. Statement of amount received from employer during adoption leave.
  8. Copy of birth certificate of child.

Your claim for benefits cannot be finalized until all the relevant information is supplied

Dependants benefits

  1. Copy of 13 digit bar-coded identity document.
  2. Copy of last 6 payslips of deceased.
  3. Information supplied by employer(UI18).
  4. Information supplied by the employer as per the requirement by the South African Revenue Services(IRP 5) or IT 3(a).
  5. Certificate copy marraige certificate.
  6. Proof of banking details.
  7. Certified copy of the death certificate.
  8. Proof of gaurdianship.

Your claim for benefits cannot be finalized until all the relevant information is supplied

Dependants benefits (Children)

  1. Copy of 13 digit bar-coded identity document.
  2. Copy of last 6 payslips of deceased.
  3. Information supplied by employer(UI18).
  4. Information supplied by the employer as per the requirement by the South African Revenue Services(IRP 5) or IT 3(a).
  5. Certificate copy of childs birth certificate.
  6. Proof of banking details.
  7. Certified copy of the death certificate.
  8. Proof of gaurdianship.
  9. Proof that the child is a learner or was of wholly or mainly dependant on the deceased.

Your claim for benefits cannot be finalized until all the relevant information is supplied

Questions and Answers

1. What is the Unemployment Insurance Fund?

The Government has established the Unemployment Insurance Fund in order to provide short-term relief to workers when they become unemployed, or are unable to work because of illness, maternity or adoption leave and also to provide relief to the dependants of the deceased contributor.

2. How is the money obtained to operate the Fund and pay benefits?

The employers and the workers of the labour market finance the Unemployment Insurance Fund, by their contributions, which they make to the Fund on a monthly basis. The government is the underwriter of the Fund and is expected to provide assistance to the Fund during times of high unemployment.

3. Should all workers contribute to the Unemployment Insurance Fund?

All workers that work for more than 24 hours per month must contribute to the Fund. It is illegal for employers not to make the deductions from the worker's earnings. The Fund currently does not apply to domestic workers and public servants. Recommendations for the inclusion of these workers are expected to be finalised later.

4. Do I have to contribute to the Fund if I earn a high salary?

Yes, all workers except those earning commission only, must contribute to the Fund, irrespective of how much they earn. The Fund on an annual basis sets a ceiling amount. All those workers who earn above the ceiling will only contribute up to the ceiling and if they become unemployed will receive benefits at the level of the ceiling. This means that every worker from the lowest level to the company director must contribute to the Fund.

5. Must all employers contribute to the Fund?

All employers that employ any person and in return provides them with remuneration in either cash or in kind must register with the Fund as soon as it commences activities as an employer. It is the responsibility of the employer to register the business and make the necessary deductions from the earnings of the workers. If the employer fails to do this there are severe penalties that can be applied in terms of the new Unemployment Insurance Act, (Act 63 of 2001).

If any employer refuses to register with the Fund and does not want to make the deductions, the workers are advised to contact the nearest office of the Department of Labour. Remember the Fund is there for the protection of the workers.
Employers are urged to comply with the provisions of the Act, as the Fund provides relieve to their ex-workers who are left with limited means or no means of support due to their services being terminated.

6. What is regarded as earnings?

All money received from the employer, whether in cash or in kind, except for commission is regarded as earnings and contributions must be paid on them. All allowances that are received are regarded as earnings and are liable for contributions. Examples of allowances are travelling allowances, entertainment allowances as well as food and accommodation allowances. More information on earnings can be found in schedule 4 and schedule 7 of the Income Tax Act.

7. How much should I contribute to the Fund?

The contribution that should be deducted from your salary is equal to 1% of the total of all earnings, commission excluded. In addition to the 1% that is paid by the worker, the employer also contributes 1% for the worker. The total contribution that is paid is therefore 2%.

8. How does the employer pay this contribution to the Fund?

The employer pays these contributions to the Fund before the 7th day of every month. For the purposes of paying contributions, those employers that are registered for tax purposes must pay their contributions to the South African Revenue Services (SARS). Those employers that are not registered for tax purposes must pay their contributions directly to the Fund.

9. How does the Fund know from whom the contributions are being received?

The Fund has established an employer/worker database in which all the employment details of the workers are stored. It is the responsibility of the employer to send the details of all its workers to this database on a monthly basis or when there is a change in the details of the workers. The details of the workers are stored on the database and when the person becomes unemployed, the Fund can process the application without delay. It is therefore very important to ensure that your employer sends your details to the UIF database.

The Fund has various methods available for all employers irrespective of size to send their worker's information to the Fund. This includes sending the information on paper to the Fund for those very small employers that do not have electronic payroll systems. Employers that do have electronic payroll systems can send their information to the database electronically, i.e. FTP, e-mail, etc.

The old blue cards (UF 74 card) will be replaced by this new electronic system. Those workers that still have the blue cards must hand them back to their employers, and request that the information be sent to the Fund, to be captured onto the database.

10. How will the Fund know how much to pay me when I am unemployed?

The rate at which the benefits must be paid is listed in schedule 3 of the Act. The important thing to remember is that benefits are paid for a maximum of 238 days or for the number of days credits that the person has accrued during a 4 year period, preceding the date of application.

Credits are given to the worker as they work and contribute to the Fund. The credits are earned as follows. For every 6 days that you work as a contributor, you receive 1 day's credit. To qualify for the full 238 days credits the worker must work for at least 4 years.

The worker is regarded as having contributed to the Fund from the first day of employment to the day that the services are terminated. A notice period worked before termination of service, is also regarded as a period employed.

11. How is the rate of benefits determined?

The rate at which benefits are paid is contained in schedule 3 of the Unemployment Insurance Act. The benefit rates range from 38% for the highly paid workers to 58% for the lowest paid workers.

Unlike the old system, the new Fund makes provision for a sliding scale of benefits to ensure that the poorest workers of the country receive the biggest amount of relief due to the difficulties caused by unemployment.

12. What types of benefits are provided by the Fund?

The Fund provides 5 types of benefits:

  • Unemployment benefits
  • Illness benefits
  • Maternity benefits
  • Adoption benefits
  • Dependents benefits

13. What are some of the rules that apply to these benefits?

All contributors that have sufficient credits will be paid a maximum of 238 days benefits, in any period of 4 years, if unemployed. In the case of maternity benefits, a total of 121 days is payable, if sufficient credits are available.

14. What happens if my salary fluctuates every month or every week?

If your salary or wage fluctuates on a monthly or weekly basis, then the Act says that the average earnings over the last 6 months must be used to calculate earnings.

15. When is a contributor not entitled to receive benefits?

  • If the contributor is receiving a monthly State pension.
  • If the contributor is receiving payment from the Compensation Fund for illnesses or injuries that caused the temporary or total unemployment of the contributor.
  • If the contributor is receiving benefits from any other scheme established by the Labour Relations Act.
  • If the contributor fails to comply with the provisions of the Law.
  • If the contributor is suspended from receiving benefits because the contributor has been caught working and collecting benefits or has committed fraud.

16. Unemployment Benefits

  • Benefits are calculated from the date of unemployment, but paid from the date of application.
  • Benefits are only paid if unemployment is for more than 14 days.
  • Benefits are only payable if the services of the contributor was terminated by the employer. If the worker resigns no benefits are payable, unless the resignation can be deemed to be constructive dismissal.
  • If the company becomes insolvent benefits are payable.
  • The contributor must be registered as a work seeker in terms of the Skills Development Act, 1998, to qualify for unemployment benefits. The contributor must be capable of and available for work.
  • The contributor must report at times and at places that the claims officer determines for the purpose of signing the unemployment register.
  • The contributor must undergo training and vocational counselling if directed by the claims officer. If the contributor refuses without just cause to undergo training, the contributor will not be entitled to benefits.

    Application for benefits must be made within 6 months of unemployment.

    Application must be made on a prescribed form.

    Subject to credits, benefits can be paid to a maximum of 238 days in any period of 4 years.

17. Illness Benefits

  • Benefits are paid from the date on which the worker ceases to work, because of illness.
  • Benefits that are payable is the difference between what the employer pays and the rate that is prescribed in the benefit schedule.
  • Benefits are only payable in respect of periods of illness lasting longer than 14 days.
  • Application for benefits must be made within 6 months of the illness.

    Application must be made on the prescribed form, which includes the completion of a medical certificate, by the doctor or recognised homeopath. A medical certificate must be completed in respect of each period of illness that is paid.

    Subject to credits benefits can be paid to a maximum of 238 days in any period of 4 years.

18. Maternity Benefits

  • Benefits are payable to a contributor who is pregnant, if an application is made.
  • Benefits that are payable is the difference between what the employer pays and the rate that is prescribed in the benefit schedule.
  • Subject to credits, benefits can be paid to a maximum of 121 days or 17.32 weeks in any period of 4 years. An application for maternity benefits does not affect the contributor's right to unemployment benefits.
  • If there is a miscarriage or a stillborn child, then benefits are paid for a maximum of 6 weeks after the miscarriage/still birth.

    Application must be made on a prescribed form.

    An application for maternity benefits must be made within 8 weeks of confinement or within 6 months of the birth of the child.

  • Application must be made on a prescribed form.

  • An application for maternity benefits must be made within 8 weeks of confinement or within 6 months of the birth of the child.

19. Adoption Benefits

  • Only one of the adopting parents can apply for benefits.
  • The child must be adopted in terms of the Child Care Act, 1983.
  • The period not working must be spent caring for the child.
  • Benefits are payable from the date on which the Court grants an order for adoption.
  • Benefits that are payable is the difference between what the employer pays and the rate that is prescribed in the benefit schedule.
  • The adopted child must be below 2 years old.
  • Application must be made on a prescribed form.
  • The application for benefits must be made within 6 months of the order of adoption being issued.
  • Subject to credits, benefits can be paid to a maximum of 238 days in any period of 4 years.

20. Dependants Benefits

Benefits are payable to the surviving spouse or a life partner of a deceased contributor, if an application is made.

  • The application for benefits must be made within 6 months of the death of the contributor.
  • Application must be made on a prescribed form.
  • Any dependant child under 21 years of age is entitled to benefits if there is no surviving spouse.
  • If the surviving spouse does not make an application within 6 months, then a dependant child can apply for the benefits, provided that the application is made within 14 days after the 6 months has expired, during which the spouse should have applied.
  • Subject to credits benefits can be paid to a maximum of 238 days in any period of 4 years.
  • The benefits payable are equal to the unemployment benefits that would have been paid, if the person was still alive.