Increase in Payment of U.I.F. Benefit

Department of Labour announces increase in payment of UIF benefit
The Minister of Labour, Mildred Oliphant, announced an increase in UIF payments, with effect from 1st October 2012.

This means that a worker – who earns R178 464 or more annually or who earns a maximum salary of R14 872 per month, qualifies for an income replacement rate of 38% which equals R5 651.36 per month for eight months.

This is subject to the number of credit days that the said worker has been able to accrue over a period of four years. The said worker 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 indicates an increase of R900 per month.

In terms of the previous income threshold of R12 478 per month at an income replacement rate of 38%, a qualifying UIF beneficiary received benefit payment of R4. 741. 64 per month over eight months.

The latest adjustments do not affect the employee and employer contributions to the UIF. The current rates of contributions from the employee and the employer remain the same at one percent each of total income.

The UIF is responsible for the payment of, Unemployment Benefits, Maternity Benefits, Adoption Benefits, Illness Benefits and Dependant Benefits.

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