Delve into the fundamentals of UIF - Unemployment Insurance Fund. Uncover the core purpose of UIF, contribution amounts, and the process employers follow to declare UIF. Discover eligibility criteria for UIF claims, as well as restrictions on who cannot claim. Learn about the duration of UIF claims, the steps involved in making a claim, and explore the convenience of online UIF claims, including the process of logging in and claiming UIF through ufiling.
UIF - Unemployment Insurance Fund. What is UIF? What is the purpose of UIF and why do I have to contribute? How much is contributed to the Unemployment Insurance Fund? How to employers declare UIF? Who can and cannot claim from UIF? How long can I claim UIF for and can I claim UIF online? How do I register and claim for UIF online? Can an employee can UIF unemployment benefits on ufiling?
UIF (Unemployment Benefits) becomes available to you as an employee when your employer terminates your service of employment, you are then able to apply to the Unemployment Insurance Fund (UIF) for benefits. Workers who become unemployed have the right to claim from the Unemployment Insurance Fund. The Unemployment Insurance Fund (UIF) is a policy that is implemented by the South African Revenue Service (SARS), the fund is responsible for collecting and distributing of funds to unemployed workers across the country to assist with alleviating the economic burden imposed on these individuals for a limited time after their official unemployment.
The UIF benefits are only available to you if you have been contributing to the UIF while you have been employed. To qualify for the UIF benefits, you must register as a work seeker. You must apply for the UIF benefits as soon as your become unemployed or within six (6) months of the termination of your employment. Unemployed workers must apply for the UIF benefits at the nearest labour center in person and take the necessary documentation with them to the center.
The purpose of the UIF ( Unemployment Insurance Fund) is to provide short term relief to employees if they become unemployed or cannot work because of maternity, adoption leave or illness. The process of contributing and paying UIF occurs directly through a company's internal financial management systems. The employers pay over the UIF contributions to the relevant authorities on the employees behalf. The UIF is aimed to provide relief to the entire country's workforce in the event of unemployment or the inability to work.
At least one (1) percent % of an employee's income must be contributed by both the employer and the employee to the Unemployment Insurance Fund. The employer is responsible for deducting the UIF contribution monthly from the employee's income and to pay this across to the UIF. If an employee has been registered and the contributions are paid, then that employee will be able to claim from the fund.
It is illegal for employers to take more that one (1) percent % of an employee's salary for UIF, deduct a larger percentage from salaries if they fall in arrears with UIF payments and may not charge an employee a service fee for deducting the UIF. If an employer does accidentally deduct too much money for the UIF at the end of the month, they must pay it back to the employee.
All registered employers are required to submit employee UIF returns as per the UIF Act either via ufiling or directly to SARS. Ufiling is a free secure online system introduced to employers to register, declare and pay the UIF contributions. Employees are also able to use the system to apply for benefits as unemployment, maternity and illness. The employee returns must provide the details of all the employees employed for that period in question no later than the 7th (Seventh) of each month for the preceding month. Employers need to capture and return the information including:
Employer UIF reference number
Employee identification number
The employment start date of the employee
Employee salary details
Employee period of employment
Hours worked by the employee
Termination date (if the employee is terminate)
The reason for the termination (if the employee is terminated)
Workers can claim UIF If:
Employers are bankrupt
Contracts of employment are ended or
if they are fired
All South African employees and employers are subject to UIF contributions. The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers, but not to:
Workers working less than 24 hours a month for an employer
Learners
Public servants
Foreigners working on contract
Workers who get a monthly state (old age) pension and
Workers who only earn commission
UIF must be claimed by workers within six (6) months after they have stopped working.
You may not claim from the Unemployment Insurance Fund:
If you have resigned from your workplace voluntary
If you refused required training or advice
if you have been suspended by your employer
if you have absconded from your workplace
Workers can claim UIF from the day they stopped working until their benefits are used up or they start working again.
The first step to claiming UIF is going the nearest department of labour to sign an employment register. You will be required to return to the offices every four (4) weeks to sign the registry again to show that you still need the unemployment benefits. The required forms are available at the department offices or can be downloaded from the labour website.
The following documentation are essential and will need to be presented when heading to the labour center to apply for UIF:
ID document or passport - Banking Details Form
UI 2.8 form for banking details - Ui 19 Form
UI-19 form to show that you are no longer working for your employer (This document is obtainable from the employer and they are obliged to provide the employee with the UI-19 form)
Employee's can register online via ufiling, as an online registered employee you will be able to securely submit your application for benefits of unemployment, reduced time benefits, maternity, illness and adoption. Continuation of benefits and notice of appeal can also be done online.
To register and activate your employee account online via ufiling you will need the following:
Your valid thirteen (13) digit South African ID number
Your email address where all correspondence will be emailed
A Cellphone number is mandatory
When registering online for Unemployment benefits there are 5 steps to complete:
Accepting the UIF online terms and conditions
Confirming your banking details
Verify and complete your personal details and update any changes
Enter your occupation and qualifications
Confirm that you are a work seeker