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.

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

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.

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.

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.

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.
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.

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.
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.

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.

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.

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.