News & Info: Labour Relations

Unemployment Benefit

Monday, 03 February 2025   (0 Comments)
Posted by: Ernest Roper
 
WHO DOES THE ACT APPLY TO? 

The Unemployment Insurance Act and the Unemployment Insurance Contributions Act applies to all employers and workers with exception of:

Those working less than 24 hours a month for an employer; 
  • Learnerships;
  • Public servants; 
  • Foreigners working on contract; and
  • Workers who only earn commission. 
PAYMENT OF CONTRIBUTIONS:
 
All workers contribute 1% of his/her monthly remuneration and the employer is obligated to match it. The total cost of contributions to be paid over to the Fund is 2% of the payroll. Employers are required to pay contributions to the Fund on or before the 7th day of each month. They do however have the option to pay the total contributions annually, provided it’s paid in advance. Payment can only be made once the employer has registered and submitted a declaration. Contributions may also be paid through the uFiling system, accessible at website www.ufiling.gov.za. 
 
DECLARATIONS 
 
All employers who employ any person and in return provide them with remuneration, must register them for UIF as soon as they commence work. It is the responsibility of the employer to register the business with the Fund and make the necessary deduction from the remuneration of the worker and to declare any changes in the details of their employees such as new appointments, changes in remuneration, terminations or illness, maternity or adoption leave or if a worker becomes deceased. Employers are encouraged to submit declarations electronically in the form of their monthly payroll systems or through the easy-to-use u-Filing system.  Alternatively, declarations could be filed manually. 
NB: Monthly declaration of employees will make finalisation of claims easy and expeditious. 
 
BENEFITS 
 
The Unemployment Insurance Fund provides five benefit types: 
  • Unemployment 
  • Illness 
  • Maternity 
  • Adoption 
  • Dependents 
HOW TO APPLY 
 
Individuals may lodge an application in person at any of the 126 Labour Centres nationally. In the case of maternity or illness benefits, applicants could arrange that the applications be submitted on their behalf. 
 
Basic Guide to the Unemployment Insurance Fund (UIF).pdf
 
Anisha Naidoo | HR Manager