Does UIF Pay The Same Every Month? (2024)

Knowing how much one can get from UIF every month will go a long way to help one plan his finances so as not to get stranded, or run out of money before other streams of income become available.

This information will enable one to prioritize his spending according to a scale of preference, putting things like food and housing first, and then gradually spending funds on other things which may be considered less important.

It is important to remember that this scheme is designed to provide temporary relief; that means, no matter how well one tries to manage the money, it will eventually run out. Nevertheless, this scheme has helped thousands of families.

Does UIF Pay The Same Every Month?

The short answer is yes; UIF pays the same amount to a person every month, but no UIF does not pay the same amount to everybody. What this means is that the amount to be paid to every individual varies according to what he was earning before.

That is in line with the very idea of what the UIF is; something to fall back on, as per the foresight of the South African Government. Let us explain exactly what it is, and how it works; so that one can calculate how much he should expect from the UIF every month.

What Exactly Is UIF?

UIF means Unemployment Insurance Fund, and it is a fund created by the government to provide financial cover for workers in the formal sector in the event that they are out of work, or unable to earn money from their work perhaps due to illness or maternity.

One cannot just walk into the office of the UIF and demand for money because he has lost his job; it is a contribution that you would have been making during your working days. That contribution would have to be matched by your employer, and also by the government as a way of keeping something aside for the rainy day.

How Much Will I Get Per Month?

That depends on how much you were earning while you worked. The scheme stipulates that workers are contribute 1% of their monthly earning; while their employer also contributes 1%; making 2% monthly.

Of course 1% can be greatly different; one person may be earning R50,000 per month, while another person could be earning $200,000. Therefore, the amount of money a person is eligible to receive every month could go up infinitely, depending on how much he makes monthly; right?

Wrong! The ceiling for UIF payments is R6 730 a month. That is the highest a person can get every month. It is a good way of staying true to the tenets of this fund; to provide financial cover for the most vulnerable. Which means those who earn very high can find other ways of investing their money, and ensuring that they have secured their futures.

The amount of money you get will be calculated by looking at how much you have earned on the average over the last 6 months.

How The UIF Payment Is Calculated

The average amount you earned over the last 6 months is calculated; the minimum is 3,500, while the maximum is R17 702. This means even if you earn 4 times that figure every month, the amount that will be registered against your account is R17 702.

Unemployment Benefits

Average salary x 12÷365 = daily income (Year 1).

That means the average salary is multiplied by 12 months, and then divided by 365 so as to get the amount you are to be paid daily. (payment is done monthly)

For example, let us say you earned R17712 per month over the last 6 months; which would be calculated at R17712 x 12 / 365 which is R582.31 per day.

But the UIF is not designed to pay you your salary; it is designed to provide some cover; meaning not all. Therefore the Income Replacement Rate calculates to around half of what you were earning daily while working.

Y1 value is used in the Income Replacement Rate (IRR) formula and the Y1 value stands for your earnings per day.

The maximum earnings through UIF is pegged at 38% of whatever you have been earning for the last 6 months. While that is not exactly half, it is quite close to it.

Based on the previous calculations therefore, let us look at what the true UIF earning can look like. The earnings are calculated daily.

What we are trying to get now is your benefits per day. Remember we have already calculated your earnings per day; which is calculated at R582.31. Remember that this value is represented by Y1. Now to get the daily benefit amount.

Daily benefit Amount (DBA) = Y1 x 38%.

= R582.31 x 38%. In simple terms, your daily benefit amount is 38% of Y1. 38% of R582.31 is equal to = R221.28 per day. The money will be paid monthly; which gives us about 5753.28 per month.

That is for Unemployment Benefit; there are other benefits that a person can claim; such as illness, maternity, and reduced work time. We briefly cover the amounts to be paid in such instances.

Maternity, Illness, Parental And Adoption UIF Payments

The common denominator to any of the situations listed above is that the person in question has not lost his job, but is temporarily unavailable to perform his tasks at work due to any of the above listed reasons.

In this case the person should still get some money from his employer as leave income. However, the UIF will still top up what he earns. The calculation is below.

Daily benefit amount (DBA) is calculated at 66% of income; and once again the highest possible earning figure is R17712 per month. Even if you earn 7 times that amount, the highest possible amount that will be registered against your name is R17712 per month.

However, Daily income (DI) is not limited to the ceiling amount. If a person earns higher, it will be registered as such. Yes, there may be some confusion, but just hold on. Read the lines below, it becomes clear.

Daily benefit amount (DBA) is different from Daily Income (DI). Daily Benefit is what the UIF pays you, so of course there has to be a limit, otherwise people would not work, they would only sit at home expecting money.

So this is how it is calculated.

To get the Daily Income; the salary over the last six months is calculated thus. Let’s say you earn R30000 per month.

R30000 x12/365 = R986.30 per day.

Daily income while on leave (leave income).

But your employer may not pay that figure while you are on leave. Your daily income while on leave would be for example; R25000 x12/365 = R821.92 per day.

Top-up (Amount paid by the UIF) would then be difference between daily income (Y1) and leave income.

For example: R986.30 – R821.92 = R164.38 (difference). This would help you continue your normal lifestyle and routine as when you were working.

However, it is important to note that where the difference is less than the daily benefit amount, the difference is paid. However, where the difference is more than the daily benefit amount, the claim is denied.

UIF Payments For Reduced Work Time

Due to the present economic crunch; some employers are forced to scale back working hours. This means they cannot pay as much. In such a circumstance the UIF can cover the loss to the employee.

Daily benefit amount calculation for Reduced Work Time:

Top-up will be the difference between Reduced Work Time income (per day) and the daily benefit amount (DBA).

DBA= R221,28.

For example; if the Reduced Work Time salary is R3000 per month which is R98,63 per day, the daily difference will be R221,28. – R98,63 which gives us R122.65 Per day. The money will be paid monthly, which gives us around 3188.9.


This article has answered the question of whether the UIF pays the same amount every month, and even offered very simple explanations about how the payment is calculated- as a guide to help one calculate his UIF payments. Please keep in mind that these payments are a temporary cushion; they are not meant to be a permanent source of income. It is therefore important to be active in searching for a job, before the money runs out.