Normal UIF Calculator 2024: UIF Limit, UIF Claim

I know you must be hearing about the UIF calculator but you are wondering what it is used for and probably asking how much does the UIF pay? Well, we have compiled all the necessary information you need to know about the Normal UIF Calculator including the UIF Payout, UIF Limit and other information that will keep you informed.

UIF which stands for Unemployment Insurance Fund (UIF) is designed by the South African government and overseen by the Department of Labour to make sure employers and employees make regular contributions to the fund.

The primary essence of this program is to aid employees who find themselves without employment so that they can claim against the fund. However, such an employee must have been contributing to the fund for a specific period.

However, UIF is a short–term relief provided to support workers that become unemployed or are unable to work.

So, if you are a contributor and for one reason or the other become unemployed, or cannot work due to illness or pregnancy, you are entitled to access the funds.

Normal UIF Calculator: UIF Payout

The fact is, claiming UIF benefits is to an extent tasking and you may end up wasting time and money if you are not well prepared.

You must know that the amount you will receive as UIF payments depend on your monthly salary when you were employed.

Employers are expected to cut 1% of their employee’s monthly salary to contribute to the fund, excluding commissions. The employer will also contribute 1% to the deducted 1% of the employee salary, making the total contribution to the fund 2%.

For instance, if an employee earns R5,000 a month, the employee has to deduct 1% of the salary, which is R50, and the employer also has to pay an extra R50 for the worker. Therefore, the total amount paid to the UIF South Africa is R100.

The UIF payout system is paid in the percentage of your earned salary while contributing to it. The highest amount that is paid out is 58% of what you earn per day. However, the high percentage applies to employees with lower pay.

How Is Uif Calculated?

Most beneficiaries of the UIF relief often find it tasking to calculate their UIF benefits. They find the process cumbersome and challenging. If you are in the same boat trying to figure out how to calculate UIF payout, continue reading to the end.

The first step is to work out your daily rate of remuneration. i.e., if you earn monthly, multiply your monthly salary by (12) twelve and divide by (365) three hundred and sixty-five days.

• Let’s take, for instance, if you earn R10000 monthly, then your daily remuneration is: R10000 (your monthly earning) *12 = R120000
• To get your daily remuneration, divide the answer by 365 days: R120000 / 365 = R328.76 per day

You must also bear in mind the days you have worked and contributed to the UIF. The policy (law) is that if you have been contributing for more than (4) four years, you are entitled to 365 days’ worth of benefits.

What about if your contribution is short-termed considering the above statement, and your UIF contribution is not up to 365 days.

If your contribution is short-termed, your benefits will be calculated according to the credits accumulated during your employment. You earn one credit for every five days worked.

For instance, if you earned a salary of R5,000, you have a daily remuneration of R164.38. Assuming you made contributions for 200 days.

• You have to divide the number of days you have been employed by 5:

200 days/5 = 40

Take the 40 and multiply it by your daily remuneration, which is R164.38. The answer is R6575.2 as your claim.

In addition, if you are paid by the hour, you should add the last (6) six-month salary together and then divide by (6) six. Apply the same method to your UIF contributions. The amount you arrive at will be the monthly salary and UIF contribution that your employer must fill on the UI.19 and UI2.7 forms.

UIF Limit

The UIF Limit simply connotes the maximum benefit that can be paid to an employee. As mentioned earlier, employees that have been making UIF payments for (4) four years or more can claim up to 365 days. However, an employee who has been contributing for less than (4) four years can only claim one day out of every five days worked while contributing to the fund.

The UIF Limit used to be R14,872 but was increased by the Minister of Finance to R17 712 per month or R212 544 annually.

UIF Claim

It is paramount to keep in mind that you must have applied to the fund and taken the necessary steps to claim the benefits when the need arises.

You can apply for your UIF claims online or by visiting the nearest Department of Labour to you.

Note that, you will be asked to return to again sign the Unemployment Register. If you are still unemployed, you are expected to sign the Unemployment Register every four weeks. Also, you will be issued a white card and you will be expected to sign the card each time you sign the register.

To apply online, follow the steps below:

Here are the steps needed to apply for UIF unemployment benefits online

Step 1: Log into your uFiling https://ufiling.labour.gov.za/uif/login

Step 2: Click to accept the Terms and Conditions

Step 3: Fill and confirm your Banking Details

Step 4: Fill and Verify all your Details

Step 5: Enter your Occupation and educational qualification

Step 6: Confirm that you are a Work Seeker

How And When Should Uif Be Paid?

You have to be prompt in making payment. It is expected that payment must be paid within (7) seven days after the end of the month during which the amount was deducted.

Peradventure if the last day for payment happens to fall on a public holiday or weekend, the payment ought to be made on the last business day before the public holiday or weekend.

Payment can be made through the available channels below:

• eFiling
• Electronic payments through the internet (EFT)
• At a branch of one of the relevant approved banking institutions.

Who Is Uif For?

Now that you have full knowledge about UIF, you must be wondering who the UIF is for. From what we’ve discussed so far, UIF is meant for all employees as well as their employers, who are responsible for contributions to the UIF.

However, the employee who falls under the following categories is excluded from contributing to the UIF.

1. Employees who are employed by the employer for less than 24 hours a month
2. Workers that are employed as an officer or employee in the national or provincial sphere of Government.
3. The President, Deputy President, a Minister, Deputy Minister, a member of the National Assembly, permanent delegate to the National Council of Provinces, a Premier, a member of an Executive Council or a member of a provincial legislature are exempted.
4. Those who are a member of a municipal council, a traditional leader, a member of a provincial House of Traditional Leaders and a member of the Council of Traditional Leaders are also exempted.

Payment Period

The payment period can take up to 3–6 weeks. That is from the date you submit your application for approval and for the first payment to be made.

Related:

• UIF Payment Queries And Possible Answers
• How To Claim Uif Online Step By Step
• How Do I Know If My UIF Claim Is Approved?
• How To Cancel Uif Registration Online
• How Many Months Do You Get Paid UIF?

Conclusion

The government of every country creates programmes meant to better the lives of its citizens. The South African government introduced the UIF program as a strategy to assist employers who lost their jobs or for one reason or the other could not work.

I believe you now have all the necessary information that will guide you through the UIF process.