UIF Benefits Calculator – How UIF Payments Are Calculated Explore How UIF Payments Are Calculated For Unemployment Benefits through Explanation and vivid examples Shows on this article.
How UIF Unemployment Benefits Payments Are Calculated
- The UIF will calculate your average salary for the last six months salaries’ prior to you claiming unemployment benefits. It’s important to note that the UIF caps the salary at R17 712.
- The UIF will then calculate your daily remuneration. This is done by multiplying your average salary by 12 (months) then dividing this amount by 365 (days in one year).
- Your value of your daily remuneration is used in the Income Replacement Rate (IRR) formula to determine the percentage of the daily UIF benefits you are entitled to.
- The IRR is the percentage of the employee’s daily income to which they are entitled to in the form of benefits. The minimum IRR is 38% and the maximum IRR is 60%. The daily income multiplied by the IRR will provide the daily UIF benefit amount that the UIF will pay you.
The IRR formula is calculated using the IRR = 29.2 (7,173.92 / (239.92 + Daily remuneration).
Here is an example for someone who earns a salary of R6000 a month
R6000 x 12 / 365
= R197,26c (Daily remuneration)
Daily
R197,26c x 38% (Minimum IRR)
= R74,96c (daily benefit amount)
Depending on the number of credits you have available, you will receive this reward each day. In order to accrue credit days, you must work as a UIF contributor for a minimum of 4 days each week. Your ability to accrue credits is capped at 365 credit days.
