Last Updated on April 28, 2023
Every month, people working for more than 24 hours per month in South Africa are required by law to make contributions to the Unemployment Insurance Fund (UIF). You might be wondering if you can claim UIF with retirement.
The UIF will provide short term financial relief to its contributors should they be terminated from their place of employment or have to take leave from work.
The UIF provides benefits to people who have involuntarily lost their jobs. This is why you cannot claim from the fund should you choose to resign, be suspended or absconded from work. You can also not claim benefits from the UIF if you were terminated for fraudulent activity.
If you retire, you may receive benefits from a retirement fund or annuity. However, you will not receive benefits from the UIF. If you never claimed from the fund, it’s either because you did not qualify for benefits or you chose not to apply for benefits when you may have been eligible for the benefits.
Every month you contribute 1% of your monthly remuneration to the UIF. This money is deducted from your salary. Your employer is also required to contribute 1% to the fund.
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Who can claim UIF Retirement benefits?
- You can claim retirement benefits if you have retired from employment and will not be seeking further employment. You cannot claim if you have taken early retirement.
- You can claim retirement benefits if you are a South African national and have a barcoded ID book.
How much can I expect to receive?
- The fund pays 38% ‐ 58 % of your gross salary, capped at a ceiling salary of R14 872.00.
- Payments are calculated as ‘credits’, and credits are calculated based on your last 48 months of employment.
- You may claim for up to 238 consecutive days, depending on the amount of credits you have accumulated on the system in the past 48 months.
When can I claim?
- You can file a claim as soon as your retirement takes effect.
- You MUST apply within 6 months from the date of retirement, provided you have enough credits on the system to do so.
How long do UIF claims take to be processed?
- Provided that your employment records are up to date on the Department’s system for the past 48 months, a retirement claim takes on average 4-6 weeks to process. In order for your claim to be processed quickly and efficiently by the Department of Labour, it is important to make sure that all your employment records are up to date on their system. Incomplete records will cause delays, and you would be required to contact employers, past and current if this is not complete.
How will I receive my funds?
- When applying, you will be asked to provide proof of banking details. These details are then registered on the Department’s system, and they will pay your benefits directly into your bank account.
- The Department takes on average 7-10 days to process a continuation form and make payment, so your payments will not necessarily be received on the same day each month.