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UIF Calculator - Learn How To Calculate UIF Payout Online
UIF Calculator - Learn How To Calculate UIF Payout Online
Monthly Income:
There are always between 260 – 264 weekdays (Monday-Friday) in a given year.
Calculate
Being unemployed for whatever reason can be pressing, but funds like the
Unemployment Insurance Fund or UIF have got you covered. These funds supplement
the income lost by workers who previously participated and contributed toward the
fund.
First, the UIF calculates your average salary for the previous six months. Do note
that this is before you claim the UIF benefits. The base value at which UIF benefits
are capped is around R17,712. You can calculate your average monthly salary using
this formula; Average Monthly Salary x 6 months / 6 months.
After this, they will calculate your daily remuneration. You can get this value by
multiplying the average salary of the previous twelve months and dividing it by
356 (the number of days in one year). You can calculate your daily earnings using
this formula; Average Monthly salary x 12 months / 365 days.
The daily remuneration number is critical to the Income Replacement Rate formula.
It helps you determine the percentage of daily benefits you should be awarded.
Simply put, IRR is the number of benefits you are eligible for on a daily basis.
According to the UIF chart, the minimum IRR is around 38% whereas the maximum
IRR value is 60%. The formula to calculate IRR is 29.2 (7173.92 / 239.92 + Daily
Remuneration).
Finally, you can calculate your UIF benefits using this formula; IRR X Daily Income.
Your total UIF benefit amount includes your daily benefits multiplied by the
available credit days. Now, what are credit days? They are counted every four days,
as you are a contributor after every four days and you receive one day’s salary.
Multiple Employers
People working with multiple employers have to calculate their UIF contributions. Every
employer and employee contributes to the fund so if you’re working with more than
one employer, you will calculate your UIF per income. Every income is counted
separately because you work with two different companies.
If your monthly contribution is R 177 with one employer, your contributions with the
other would be the same. Hence the calculation method will be the same. You just have
to repeat the process to calculate your benefits.
Daily Income for Weekly Earners = average weekly rate x 52/ 365
Daily Income for Monthly Earners = average monthly rate x 12/ 365
IRR = 29.2 (7173.92 / 239.92 + Daily Remuneration)
UIF Benefits = Daily Income x IRR
Benefits = Difference between Reduced Work Time Income (on a daily basis) and the
daily benefit amount or DBA.
The differential value is your UIF benefits for the services you have contributed. If the
daily income is more than the benefit amount, you are no longer eligible as a claimant
and your claim will be rejected.
Calculate
Daily Income = Average Monthly Salary x 12 Months / 365 days = (15000 X 12) /
12 = R493.15.
DBA or Daily Benefit Amount = 66% of the Daily Income = R15,000 x 66% =
R9,900.
Daily Income while you are on leave = Leave Income x 12 Months / 365 Days =
R10,000 x 12 / 365 = R328.77.
Top-Up UIF Benefits = Daily Income – Leave Income = R493.15 – R328.77 =
R164.33.
Here you need to know the difference between gross salary and the basic salary. The
gross salary is the initial amount an employee receives from the company or employer
while the basic salary is the amount one receives after dedication and expenses
including the UIF contribution. The UIF is calculated on the basis of the previous one,
the gross salary.
An enrolled person can calculate the amount he will receive from UIF. I have provided
the formula below, all you need is to put values in the formula and you will get an
answer. Credit days indicate the number of days an employee worked as a contributor
and the daily benefit is the amount one receives per day from UIF.
Formula
The total benefit amount refers to the overall benefit amount the employee will receive.
The daily benefit amount is the amount of money you are entitled to per day from the
UIF death benefit. Meanwhile, the available credit days represent the number of days
for which you are eligible to receive the benefits.
You earn one credit day every four days you actively work as a contributor.
However, there is a cap on the total number of credit days you can accumulate.
This limit is set at 365 credit days.
Simply put, you can continue accumulating credit days for as long as you work, but
once you reach the maximum of 365, you won’t get more credits even if you keep
working. In addition, the Daily Benefit Amount is calculated as 66% of your income,
capped at R17,712 per month.
In conclusion, UIF benefits are an excellent insurance project for people who are in
search of a full-proof future plan. All you need to do is contribute 2% of your monthly
remuneration to the fund and receive it later when you are on leave or unemployed. I
hope this guide was helpful for anyone figuring out how to calculate UIF payout
benefits.
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