Unemployment Insurance Fund (UIF) Benefit Increase

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      sylvia hammond

      The Minister of Labour, Nelisiwe Mildred Oliphant, has announced an increase in the Unemployment Insurance Fund (UIF) benefit payments with effect from today 1st October 2012.

      Employees who earn R178 464 or more annually or who earn a maximum salary of R14 872 per month, qualify for an income replacement rate of 38% which equals R5 651.36 per month for eight months if they become unemployed.

      This is subject to the number of credit days that the employee has been able to accrue over a period of four years. The employee will only qualify for the entire income replacement period of eight months provided he or she has accumulated 238 days over a four year period. This is an increase of R900 per month on the previous benefit payment of R4. 741. 64 per month over eight months.

      The current rates of contributions from the employee and the employer remain the same at one percent each of total income.

      The UIF is an entity of the department of Labour and its legislative mandate is to register all employers and employees in the country and collect monthly contributions from both parties. These contributions are used to pay benefits and any other expenditure incurred relating to the application of the UIF Act.

      Despite the huge volumes of claims that the UIF is paying due to the economic environment that has resulted in job losses for many, UIF is still in financially sound position.

      The UIF is responsible for the payment of:

      • Unemployment Benefits
      • Maternity Benefits
      • Adoption Benefits
      • Illness Benefits
      • Dependant Benefits

      The table below indicates the benefit payment increase:

      Current benefit scale/ per annum 

      Increased benefit scale/per annum

      Increment amount

      R 149 736

      R 178 464

      R 28728

      R 12 478/ per month

      R 14 872/ per month

      R 2394

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