What Is UIF? – How South Africa’s Unemployment Insurance Fund Works

Updated 11 August 2025

UIF (Unemployment Insurance Fund) is SA’s short-term safety-net that pays you when you lose your job, go on maternity leave, fall ill or adopt a child. Here’s a plain-English, mobile-friendly breakdown.

1. Who pays?
   Every month the employer deducts 1 % of your gross salary and adds another 1 % from the company. That 2 % is sent to SARS under the UIF reference number.
2. Who is covered?

• Full-time, part-time (even if you work only 24 hours a month) and fixed-term contract staff.
• Domestic workers and learnership participants are automatically included.
• Freelancers on turnover tax can opt in at SARS eFiling.

1. What can you claim? Benefit Max duration Payout % Unemployment (retrenchment, contract ended) Up to 12 months 38 %–60 % of salary, capped at R17 712 Maternity 121 consecutive days 66 % of salary Illness / Injury Up to 34 weeks 38 %–60 % of salary Adoption 10 weeks 66 % of salary Dependants (if contributor dies) Once-off lump sum Calculated on deceased’s credits
2. How to claim – three taps on your phone
3. Register on uFiling.co.za or the uFiling app.
4. Upload:
   – UI-19 form (from employer)
   – Certified ID copy
   – Bank confirmation letter
   – Medical certificate (for illness) or birth certificate (for maternity)
5. Track status in the app; first payment hits your bank within 15–35 working days once approved.
6. How the amount is worked out
   SARS supplies UIF with your last 4 years’ earnings. The daily benefit = (average daily wage × IRR) but never more than the daily income cap of R590.40 (2025). You get 1 credit day for every 4 days you contributed.
7. Common SA Google questions
   “How long does UIF take to pay out after retrenchment?”
   “Can I claim UIF if I resigned?” (No – unless constructive dismissal)
   “UIF maternity leave payout calculator”
   “Domestic worker UIF registration”
8. Quick checklist before you leave a job
   ☐ Ask HR for the UI-19 immediately.
   ☐ Verify contributions on your IRP5 under code 4141.
   ☐ Screenshot your uFiling profile for proof.

Bottom line
Pay 2 % now, claim up to 12 months of income later. Keep your UI-19 handy and register on uFiling so you can tap “Apply” the day you need it.