UIF cancellation online procedure: What you ought to know
The Unemployment Insurance Fund (UIF) is a social security system that provides short-term relief to workers who become unemployed and those unable to work due to illness, maternity, or adoption leave. In South Africa, the UIF is governed by the Department of Employment & Labour. However, there may be instances where an individual would like to cancel their contributions, and they can achieve that with the UIF cancellation online procedure below.
Source: UGC
The Unemployment Insurance Fund contributions are compulsory for most employees and their employers in South Africa. If you are an employer, you should make a monthly contribution to UIF consisting of 2% of the employee's gross salary, where the employer contributes 1%. However, you can deregister UIF due to various factors. So, how do I cancel my UIF?
How to cancel UIF
An employer can cancel the employees from UIF under the following conditions:
- The employee voluntarily leaves a job.
- The employee is suspended due to fraud.
- Termination of employment.
- The worker resigns, retires, or has been retrenched.
Employees who leave their jobs voluntarily will not enjoy the system's benefits. In such a situation, the employer can deregister the employee from the system by completing the declaration uFiling or UI-19 registration form.
UIF cancellation online procedure
- First, you must create an account on the UIF's online portal.
- Once logged in, navigate to the 'My UIF' tab and click the option to cancel your contributions.
- You will be prompted to provide details, including your identification number and why you want to opt out.
- After you submit the cancellation request, the UIF will process the application and notify you of the outcome.
Source: UGC
Code to cancel UIF
The UIF offers relief to workers who become unemployed or unable to work due to illness, maternity or adoption. However, there are situations where an employee may need to cancel their UIF registration or that of an employee.
Cancelling UIF contributions will affect an individual's eligibility to receive benefits from the fund. It may also affect an individual's ability to secure credit, as some credit providers may require proof of UIF contributions as part of their assessment requirements. Therefore, individuals should seek professional advice before making any decision.
UIF benefits
In South Africa, the Unemployment Insurance Fund (UIF) provides various benefits to eligible workers who contribute to the fund. These benefits are designed to offer financial support during periods of unemployment, illness, maternity, adoption, or the unfortunate event of a contributor's death. Here are the main types of UIF benefits:
Unemployment benefits
Individuals who have contributed to the UIF and lost their jobs through no fault of their own may qualify. The benefit is typically paid for a specific period, depending on the length of the contributor's employment history and contributions.
Illness benefits
UIF provides financial support to contributors who cannot work due to illness or injury. It is provided for a limited period, based on the severity and time of the illness or injury.
Maternity benefits
This is to support female contributors during maternity leave. The benefits are typically provided for a specific period before and after childbirth.
How to claim UIF benefits
One needs to apply at their nearest labour centre or through the online portal. One must prove such claims with a UI-19 form, medical certificates, and proof of banking details.
How to cancel the UIF registration
You must complete and submit the UI-19 form to the Department of Labour. The UIF cancellation form notifies the Labour Department of your intention to cancel, and you must give valid reasons.
Key points about UIF compulsion
The Unemployment Insurance Fund (UIF) in South Africa operates on a compulsory basis, meaning employers and employees are legally required to contribute to the fund. Here are key points regarding the compulsion of UIF contributions:
Mandatory contributions
Employers are legally obligated to deduct UIF contributions from their employees' salaries. Employees must also contribute a portion of their salaries to the UIF.
Percentage of salary
The UIF contributions are calculated as a percentage of the employee's remuneration. The employer and the employee make separate contributions, which are then submitted to the UIF. The total UIF contribution rate is 2% of the employee's salary (1% contributed by the employee and 1% by the employer).
Employer's responsibility
Employers are responsible for deducting employees' portion of the UIF contribution from their salaries. Employers must add their contribution and submit the total amount to the UIF monthly.
Employee's responsibility
Employees are legally obligated to allow their employers to deduct the UIF contributions from their salaries. The deducted amount is a percentage of the employee's gross income.
Source: UGC
Compliance with the law
Failure to comply with UIF contributions violates labour laws in South Africa. Employers who fail to deduct and submit UIF contributions may face penalties and legal consequences.
Funding for UIF benefits
The contributions from employers and employees fund various UIF benefits, including unemployment, illness, maternity, adoption, and dependents' benefits.
Exclusions
Not all workers are required to contribute to UIF. Independent contractors, self-employed individuals, freelancers, and certain part-time workers who work less than 24 hours a month might not be obliged to contribute.
Above is what you need to know about the UIF cancellation online procedure. These contributions are a percentage of the employee's salary, with the employer deducting the employee's portion and adding its contribution before submitting the total amount to the UIF.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
READ ALSO: Unemployment Rate Decreases to 31.9% in Third Quarter, South Africans Furious: "This Is a Joke"
Briefly.co.za published an article about the unemployment rate in South Africa. The unemployment rate in the country went down by 0.7% to 31.9%, according to the latest labour statistics. This meant that 500,000 more people were employed in the third quarter.
According to eNCA, the statistics reflect that the number of employed people rose from 16.3 million to 16.8 million. The statistics also revealed increased employment in the community and social services, construction, agriculture and finance services.
Source: Briefly News
