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How is UIF calculated?

UIF is calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer. … The total UIF contribution (employee + employer) must be paid monthly based on the amounts contained in the EMP201 and UI-19.

The Unemployment Insurance Contributions Act, 2002 states the following:
“Subject to subsection (2), the amount of the contribution payable in terms of section 5 –
a) by an employee, must be one per cent of the remuneration paid or payable to that
employee by his or her employer during any month; and
b) by an employer in respect of any one of its employees, must be equal to one per cent of the
REMUNERATION paid or payable by that employer to that employee during any month.


REMUNERATION means “remuneration” as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act, but does not include any amount paid or payable to an employee –
(a) by way of any pension, superannuation allowance or retiring allowance;
(b) which constitutes an amount contemplated in paragraphs (a), (cA), (d), (e) or (eA) of the
definition of “gross income” in section 1 of the Income Tax Act; or
(c) by way of commission”


Following from this, the Income Tax Act, 1962 (Act, 1962 defines “remuneration” as follows:
“Remuneration” means any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument
pension, superannuation allowance, retiring allowance or stipend, whether in cash or
otherwise and whether or not in respect of services rendered, including–


a) any amount referred to in paragraph (a), (c), (cA),(d), (e), (eA) or (f) of the definition of
“gross income” in section one of this Act;
b) any amount required to be included in such person’s gross income under paragraph (i) of
that definition;
bA) any allowance or advance, which must be included in the taxable income of that person in
terms of section 8(1)(a)(i), other thani) an allowance in respect of which paragraph (c) applies;
ii) an allowance or advance paid or granted to that person in respect of
accommodation, meals or other incidental costs while that person is obliged to
spend at least one night away from his or her usual place of residence in the
Republic”
and so forth – refer to the relevant act for more information

More Information on UIF

Is UIF calculated on gross or basic salary?

CALCULATING UNEMPLOYMENT INSURANCE FUND (UIF) CONTRIBUTIONS


The calculation of UIF is not a simple matter of applying 1% to the gross pay of an employee. The calculation of the amount of income that is subject to UIF, is set out in the UIF Act and the Income Tax Act.
UIF is Calculated on gross income.


The Unemployment Insurance Contributions Act, 2002 states the following:
“Subject to subsection (2), the amount of the contribution payable in terms of section 5 –
a) by an employee, must be one per cent of the remuneration paid or payable to that
employee by his or her employer during any month; and
b) by an employer in respect of any one of its employees, must be equal to one per cent of the
REMUNERATION paid or payable by that employer to that employee during any month.


REMUNERATION means “remuneration” as defined in paragraph 1 of the Fourth Schedule to the Income Tax Act, but does not include any amount paid or payable to an employee –
(a) by way of any pension, superannuation allowance or retiring allowance;
(b) which constitutes an amount contemplated in paragraphs (a), (cA), (d), (e) or (eA) of the
definition of “gross income” in section 1 of the Income Tax Act; or
(c) by way of commission”


Following from this, the Income Tax Act, 1962 (Act, 1962 defines “remuneration” as follows:
“Remuneration” means any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument
pension, superannuation allowance, retiring allowance or stipend, whether in cash or
otherwise and whether or not in respect of services rendered, including–
a) any amount referred to in paragraph (a), (c), (cA),(d), (e), (eA) or (f) of the definition of
“gross income” in section one of this Act;
b) any amount required to be included in such person’s gross income under paragraph (i) of
that definition;
bA) any allowance or advance, which must be included in the taxable income of that person in
terms of section 8

(1)(a)(i), other thani) an allowance in respect of which paragraph (c) applies;
ii) an allowance or advance paid or granted to that person in respect of
accommodation, meals or other incidental costs while that person is obliged to
spend at least one night away from his or her usual place of residence in the
Republic”
and so forth – refer to the relevant act for more information

UIF is Calculated on gross income

More Information on UIF

How much UIF will I receive?

HOW MUCH MONEY CAN WORKERS CLAIM? If you have been contributing to the Fund for four years or more, then you can claim for up to 238 days. If you have been contributing for a shorter period, then you can claim 1 day for every 6 days that you worked while you were contributing to the Fund. If you take maternity leave, you can only claim up to 121 days. The Fund pays a percentage of the wage/salary that you earned while you were contributing to the fund. The highest amount that can be paid is 58% of what you earned per day.

How do I claim UIF, where do I start?

          
There are different procedures for claiming the various benefits available:

  • Unemployment benefits
  • Illness benefits
  • Maternity benefits
  • Adoption benefits
  • Death benefits

How do i claim unemployment benefits? What forms do I need? If you want to claim from the Fund you need to go to your nearest Labour Centre. There you will be asked to sign the unemployment register. You will be told when you need to come back and sign the register again. You will have to sign every four weeks to show that you still need to claim the UIF benefits.

You must go back to the office and sign the register on the correct date. If you are ill, you must take a doctor’s certificate with you to the labour centre. You will be given a white card, which the UIF officer will sign each time you sign the register.


If everything is in order, you should start getting money from the Fund within eight weeks of registering. The money will then be paid every four weeks, until all the benefits are used up. If you don’t receive your money in eight weeks, you should phone the Labour Centre and ask them to find out why there is a delay. Remember to have your name and ID number ready. You will receive a slip every time you receive money so that you can see how much you have received and how much you can still get.

             
To claim unemployment benefits you need to have:

  • a copy of 13-digit bar-coded identity document
  • a copy of your last six payslips
  • information supplied by your employer (UI19)
  • a service certificate from the employer
  • proof of registration as a work seeker
  • a fully completed registration form.

If you want to receive unemployment benefits you need to be prepared to:

  • Go for training or career counseling if the UIF officer asks you to.
  • Be available for work. If you are offered work, you need to be ready to work.
  • Go to different companies to ask for work. You will get a form that needs to be signed showing that you have looked for work and that there are no jobs available.

You need to collect your unemployment benefits from the Labour Centre on the date they said the money will be there. You have to collect the money yourself and you must have your white card and ID book with you.

How do I claim for ilness benefits? What forms do I need?

To apply for illness benefits, you need to register at the Labour Centre nearest to you. If you are too ill to go to the office yourself, a friend or family member can get the form from the office and bring it to you to sign. The signed form then needs to be returned to the Labour Office.You will need:

  • a copy of your bar-coded identity document
  • copies of your last 6 payslips
  • information supplied by your employer (UI19)
  • a service certificate from the employer
  • proof of banking details
  • a statement of amount received from your employer during the period of the illness
  • a fully completed registration form.

You also need to submit a medical certificate (Form UF86) from your doctor. You need to get your doctor to complete the appropriate section of Form UF86 and then submit this to the UIF claims officer at the Labour Centre. The Department of Labour will consider the application and post Form UF87 to you. You need to complete this form and your doctor needs to sign it. You then submit this form to the claims officer as well.

             
You will be paid benefits for the time that the doctor has booked you off work but not for the first 2 weeks off work. You will also only be paid for the time that you have not received normal wages from your employer. Illness benefits will be paid to you by cheque and posted to you.

           
Remember, you cannot claim illness benefits if your illness was caused by your own misconduct or if you unreasonably refuse treatment or fail to follow the doctor’s instructions. If you have lost your job as well as being too ill to work, you need to inform the claims officer of this because you might also be able to claim unemployment benefits for the period not covered by the illness benefits.

CLAIMING UIF MATERNITY BENEFITS

To claim maternity benefits, you need to register at the Labour Office and get a medical certificate on the correct form from your doctor.

To register you will need:

  • a copy of 13-digit bar-coded identity document
  • Copies of your last 6 payslips
  • information supplied by your employer (UI19)
  • a service certificate from the employer
  • proof of your banking details
  • a statement of amount received from employer during maternity leave
  • a fully completed registration form.

      
When you register, you will be given Form UF92. This form must be filled in by your doctor. You then submit this form to the UIF claims officer at the Labour Office. The claim will be paid by cheque which will be posted to you. To apply for benefits after the baby is born, you need to complete Form UF95 with help from the doctor who delivered the baby. If you are also unemployed, then you must notify the claims officer.

How do I claim for adoption benefits? What document/ forms do I need?

If you want to claim adoption benefits, you need to register with a claims officer at your nearest Labour Centre.

You will need to have:

  • a copy of your identity document
  • copies of your last 6 payslips
  • your employer’s details on form UI19
  • a service certificate issued by your employer
  • the adoption order
  • proof of your banking details
  • a statement of amount that you have received from your employer during your adoption leave
  • a copy of your adopted child’s birth certificate.

You must apply for the benefits within six months of the adoption order being issued. Adoption benefits are paid by cheque through the post. A form will accompany the payment. This form must be filled in and sent back to the claims officer at the labour centre.

CLAIMING UIF DEATH BENEFITS

The husband or wife of the deceased worker and any minor children of the worker can claim death benefits from the UIF. You must apply for these benefits within six months of the death of the worker.

        
If you were the husband or wife of the deceased worker, you need to go to the Labour Centre and fill in Form UF126. You will need to have:

  • your identity document
  • copies of the deceased’s last six payslips
  • the employer’s details on form UI19
  • a certified copy of the death certificate
  • a certified copy of your marriage certificate
  • a service certificate from the employer
  • proof of your banking details.

If you are the child of the deceased worker, you can claim by completing Form UF127 and submitting it at the Labour Centre. You will need:

  • a copy of your identity document
  • copies of the last six payslips of the deceased
  • information supplied by the employer on form UI19
  • a service certificate from the employer.
  • a certificate copy of your (the child’s) birth certificate
  • proof of your banking details.
  • a certified copy of the death certificate
  • proof of guardianship
  • proof that you (the child) are a learner who was dependent on the deceased.

The Labour Office will give you Form UF128, which needs to be filled in by the deceased’s last employer and then submitted at the Labour Centre. The death benefit is the amount that the worker could have claimed if they were unemployed. This is paid out in one payment.

More Information on UIF

What is the maximum UIF payment?

UIF is calculated as 2% of an employee’s remuneration for UIF purposes, split evenly between the employee and employer, i.e. 1% contributed by the employee and 1% contributed by the employer. 

Remuneration for UIF purposes is the employee’s remuneration, less certain exclusions such as commission, and is subject to a monthly income cap of R14 872. The maximum UIF contribution for each party is, therefore, R148.72 a month (R297.44 in total). For employees who are paid at more regular intervals (e.g. weekly), this cap will be apportioned across their pay periods – this may lead to slightly lower UIF contributions in the last pay period of the month.

The total UIF contribution (employee + employer) must be paid monthly based on the amounts contained in the EMP201 and UI-19.

More Information on UIF