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uif benefits calculator – How UIF Payments Are Calculated For Unemployment Benefits

uif benefits calculator – How UIF Payments Are Calculated For Unemployment Benefits Welcome Ajiraforum.com In this uif benefits calculator you will Get Complete Guide on How UIF Payments Are Calculated For Unemployment Benefits.

Being unemployed can be a very stressful time for people because they still have to pay for their living expenses even though they no longer have the income to do so. This kind of circumstance justifies the existence of the Unemployment Insurance Fund (UIF).
The Unemployment Insurance Fund (UIF), which was previously contributed to by employees, replaces lost income.

A worker must contribute 2% of their monthly pay to the UIF each month. The employee will contribute the final 1%, leaving the employer’s contribution at 1%.

These contributions accumulate credits over time. The longer you can receive benefits from the UIF, the more credits you will have.

How UIF Unemployment Benefits Payments Are Calculated

1. 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.
2. 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).
3. 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.
4. 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.

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