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ARTICLE · 16 MARCH 2012

Know Your Rights About UIF

The purpose of the Unemployment Insurance Act 63 of 2001 is to provide financial assistance to employees who find themselves jobless.

South AfricaEmployment and HR

Article by Lavery Modise and Carolyn McKechnie

The purpose of the Unemployment Insurance Act 63 of 2001 is to provide financial assistance to employees who find themselves jobless. The act also provides for financial assistance to unemployed persons due to illness, maternity and adoption.

An employee must be a contributor, able to prove to the unemployment insurance commissioner that he and his employer have contributed to the UIF on a monthly basis.

Such contributions amount to 1% of the employee's monthly remuneration. Proof of contributions will be reflected on an employee's payslip.

The act does not apply to the following employees:

  • Those working less than 24 hours in a month.

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