South Africa’s economy continues to be under pressure with companies shutting down cutting jobs and freezing hiring as they battle rising costs and slow growth.
According to Statistics South Africa, the country’s official unemployment rate stands at 32.9%, highlighting how difficult it remains for many to find work.
As many people continue to lose their jobs in this tough economic climate, the Unemployment Insurance Fund (UIF) offers short-term financial relief to workers who lose income due to retrenchment, illness, maternity, or other valid reasons.
Both employees and employers contribute 1% of each of the employee’s gross monthly salary to the fund, up to a cap of R17,712/month.
What is UIF?
The Unemployment Insurance Fund (UIF) gives short-term relief to workers when they become unemployed or are unable to work because of maternity, adoption and parental leave, or illness. It also provides relief to the dependants of a deceased contributor
There are five different types of benefits payable by the Fund:
- Unemployment benefits;
- Illness benefits;
- Maternity benefits;
- Adoption benefits;
- Dependents’ benefits.
Who can claim from the UIF
To qualify for benefits, you must:
- Have contributed to UIF while employed
- Have lost income due to reasons beyond your control
- Be registered with the Department of Employment and Labour
- Submit your claim within six months of job loss or income reduction
You cannot claim if:
- You were dismissed for misconduct
- You resigned voluntarily
- You work less than 24 hours per month.
How much will you get?
The UIF doesn’t pay your full salary it’s a partial income replacement based on your previous earnings.
How it’s calculated
- Average Daily Wage
- (Monthly Salary × 12) ÷ 365
- Capped at R17,712/month
- Income Replacement Rate (IRR)
- Ranges between 38% and 60%, depending on your salary.
- Daily UIF Benefit
- IRR × Daily Wage
- Total Claim
- Daily Benefit × Credit Days
- If you’ve contributed 4+ years, you can claim for up to 365 days
- If less than 4 years, you earn 1 credit day for every 6 days worked
How to claim
- Visit the filing portal
- Register and complete your claim form
Visit the labour centre with
- Your ID or passport
- Latest 6 months’ payslips
- Dismissal or retrenchment letter
- Proof of banking details
Processing time
- Initial payment: 6–8 weeks
- Ongoing payouts: Every 4 weeks
What’s new
- Salary cap raised to R17,712/month (previously R14,872)
- Maximum monthly contribution now R354.24 (R177.12 each from employer and employee)
- Digital claims have been improved, though in-person follow-up is often still required
