Home South Africa News Everything you need to understand about unemployment insurance fund benefit.

Everything you need to understand about unemployment insurance fund benefit.

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The unemployment Insurance fund lately has been under a lot of pressure this due to the lockdown in South Africa.The lockdown is as a result of the covid-19 and many people are no longer going to work and they are staying at home.

Learn more here about the the UIF:

• Many businesses are no longer able to pay it’s employees but if they contributing towards the UIF they can apply for assistance.

• Companies are urged to apply on their employees behalf using the e-mail address (COVID19ters@labour.gov.za)

• There will be an automatic reply giving you all the step by step instructions to follow and the documentation required

• After completing all the required information documents and applications must be submitted to Covid19UIF@labour.gov.za<

• Hotline number: (012) 337 1997

Who is eligible to apply for the Covid19 Relief Benefit?

• Employer who have can not pay employees their wage during the lockdown period can apply for the Relief Benefit.

How can one apply?

• The employer must send an email to Covid19ters@labour.gov.za

When will the submission of applications end ?

• The COVID-19 Benefit is only valid during the lockdown period applications after the lockdown period will be disregarded

Does everyone qualify for the UIF Relief Benefit?

• No, only employers registered with UIF can benefit.

• Also take not that companies who registered after 15 March 2020 may not qualify for the Benefit

Domestic workers and Freelancers

The employer’s can also apply for the benefit that is if they were contributing to the UIF.

Workers who are not covered by the unemployment insurance amendment act may not qualify for example freelancers and commission.

How long does it take:

It usually take a minimum of 10 days that is if all documents are submitted.

How much will I be paid:

The calculation of payment is based by the last salary capped to the current ceiling of R 17 712.

The relief amount (IRR) is then determined in line with the current sliding scale which is between 38% to 60%.

The PRINCIPLE is the “higher the salary the lower the replacement rate” ie., where the remuneration is R 20 000 the calculation will be based as if the employee received R 17 712 (ceiling).

Since this is the highest, the replacement rate will be 38%, which will be (38% of R 17 712 = (R 221.28 per day) = R 6 638.40 for 30 days or R 6 859.68 for 31 days).

UIF will take into account the recent wage of the employee to determine the Income Replacement Rate applicable.

How is the money going to be paid:

It depends with who the fund has agreements with.If they have agreement with Employer associations or bargaining council’s the funds will be transferred to the one you have agreement with.Then the employer association or bargaining council will move the funds to companies as individuals inorder for them to pay their employees.

Where the Fund has and the company have a direct agreement the funds will be transferred to the company straight and it will pay it’s employees their salary.

In some cases they may agree with the company to deposit the funds directly into the employee’s account.

SOURCE:News356