Unemployment Benefits
Unemployment Benefits
In the case of involuntary unemployment and registered as a work seeker, workers contributing to the Unemployment Insurance Fund and having accumulated sufficient credits before becoming unemployed are entitled to unemployment benefits for up to 34 weeks. The application for unemployment benefit must be made within 12 months of the termination of the contract of employment (earlier this was 6 months), but the Commissioner may accept an application made after the expiry of the 12-month time limit on showing just cause.
Unemployment benefit of 38% to 60% of average earnings in the last six months, depending on the insured's period of service and level of income, is paid for up to one year. For every five completed days of employment, the insured is eligible for one additional day of benefits, up to 365 days in the four-year period immediately preceding the day after the end of period of employment. Provided that the unemployed person is capable of and available for work, they must register with and report to the public employment exchange, unless unemployment is the result of illness or pregnancy. The first 238 days of benefits are paid at the income replacement rate set under the law (38-60%), and the remainder of credits is paid at a flat rate of 20%. Under the amended law, unemployment benefits must be paid to the unemployed contributor regardless of whether or not the contributor has received benefits within that four-year cycle if the contributor has credits.
Unemployment must not be the result of refusing suitable work or training. The unemployment benefit is paid after 14 14-day waiting period.
Source: §12, 13, 15-18 of the Unemployment Insurance Act, 2001 (last amended in 2020); ISSA Country Profile for South Africa
Non-Standard Workers' Rights on Unemployment Benefits - Platform workers
Unemployment Benefits in the form of the Unemployment Insurance Fund (UIF) are available when both employer and employee are signed up and contributing. The contribution that employers must deduct from a worker's pay is 1% of the worker's total earnings, excluding commission. In addition to the 1% deducted from the worker, the employer also contributes 1% for every worker that they employ. The total contribution paid to the UIF is therefore 2%. As most independent contractors are not considered employees, there is no contribution to the fund and they are not eligible.
