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HR News

UIF Benefit Increase as at 1 October 2012

The Minister of Labour, Nelisiwe Mildred Oliphant, announced an increase in the Unemployment Insurance Fund (UIF) benefit payments with effect from 1 October 2012

“I am pleased to announce that with effect from today 1st October 2012 the UIF benefit payments will be increased,” she said.

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 an entity of the department of Labour and its legislative mandate is to register all employers and employees in the country and collect monthly contributions from both parties. These contributions are used to pay benefits and any other expenditure incurred relating to the application of the UIF Act.

Despite the huge volumes of claims that the UIF is paying due to the economic environment that has resulted in job losses for many, UIF is still in financially sound position.

“We are pleased that our efforts at administering the Fund’s finances in a prudent manner have borne fruitful results. It is encouraging that during these hard trying times we are able to assist workers in warding off poverty. The benefit increases will see our beneficiaries receiving more money in their pockets. Hopefully, the money will be put to good use and will assist them in fighting poverty,” the minister said.

The UIF is responsible for the payment of:

·          Unemployment Benefits

·          Maternity Benefits

·          Adoption Benefits

·          Illness Benefits

·          Dependant Benefits

The table below indicates the Benefit Payment Increase




R149 736

R 178 464


R12 478/ per month

R14 872/ per month


Issued by the Department of Labour (UIF)

About the Author:

Rob has dealt with Human Resource issues for over 20 years in a multitude of industries. Rob loves to hug. He also loves to kayak, so if you need to get away from it all, ask him to take you out to sea. Depending on how much he likes you will determine how far out to sea!