Here is what you need to know about Unemployment Insurance Fund benefit
The COVID-19 pandemic and the nationwide lockdown in South Africa has forced some people to stay home. The Unemployment Insurance Fund (UIF) has come under extreme pressure during this difficult period.
Here’s what you need to know about the UIF:
• Any UIF contributing business-facing distress, on lockdown and unable to pay salaries due to lockdown can apply.
• Companies are encouraged to apply on behalf of their employees using the e-mail address ([email protected])
• Automatic reply with all the required documents and step by step on the process to follow.
• Completed applications and documents must be submitted to [email protected]<
• Hotline number: (012) 337 1997
Who has to apply for the Covid19 Relief Benefit?
• Employers who are unable to pay salaries of their employees during the lockdown period can apply for the Relief Benefit.
How do I apply?
• The employer should send an email to [email protected]
What is the deadline for the submission of applications?
• The COVID-19 Benefit is applicable for the lockdown period, no applications will be entertained once the lockdown is lifted.
Do employers who are not registered with UIF qualify for the Relief Benefit?
• No, an employer need to be registered with UIF to qualify for the Benefit.
• Companies who registered after the 15 March 2020 may not be eligible for the Benefit
Domestic workers and Freelancers
Your employer can apply for the benefit provided they have been contributing to the UIF.
Freelancers and commission workers do not qualify, as they are not covered under the Unemployment Insurance Amendment Act.
How long does it take:
Turnaround time is 10 days provided all documents are submitted.
How much will I be paid:
The calculation of payment is based/informed by the last remuneration capped to the current ceiling of R 17 712.
The benefit amount (IRR) is then determined in line with the current sliding scale which ranges between 38% to 60%.
The PRINCIPLE is the “higher the remuneration the lower the replacement rate” ie., where the remuneration is R 20 000 the calculation will be based as if the worker 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 consideration the current salary of the employee to determine the Income Replacement Rate applicable.
How is the money going to be paid:
Where the Fund has agreements with Bargaining Councils or Employer Associations, the funds will be transferred to the Bargaining Council or Employer Association. Thereafter, the Bargaining Council or Employer Association will transfer to the individual companies to pay their employees.
Where the Fund has an agreement directly with the company, funds will be transferred to the company to pay the employees.
There are instances where an agreement with a company will be that the funds be paid directly into the employee’s account.
How long will I receive the benefit?
Where the Fund has agreements with Bargaining Councils or Employer Associations, the funds will be transferred to the Bargaining Council or Employer Association. Thereafter, the Bargaining Council or Employer Association will transfer to the individual companies to pay their employees.
Where the Fund has an agreement directly with the company, funds will be transferred to the company to pay the employees. There are instances where an agreement with a company will be that the funds be paid directly into the employee’s account.
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Source: eNCA
