Please note: CPS is a 3rd party administrator responsible for processing UIF grant payments.
The Unemployment Insurance Funds (UIF), aims to provide relief to workers when unemployed for specific reasons. You can apply for benefits if you are on maternity leave or if your employer terminates your service. The benefits are only available to you if you have been contributing to the UIF while you worked. You cannot claim if you have resigned, been suspended or absconded from work.
Various factors affect the time it takes for UIF benefits to be paid out:
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The Complexity of the Claim
How complex a claim is, and whether all the necessary documents are completed and received, can influence the time it takes for a payout.
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Accurate Information
Inaccurate or incomplete information shared in the documents may extend the waiting period. And if further checks are necessary, the process can also take longer.
Why a UIF claim may be rejected
There are many causes behind the rejection of a claim.
Wrong/Inaccurate information
The accuracy of all the submitted documents will be investigated. Any error in them will result in the claim being rejected, and the process starting from scratch.
Impatient Applicants
Hurried applicants applying for UIF must check their documents over and over before submitting them. This should help avoid any errors.
Eligibility
A person must contribute to the fund, must have worked more than 24 hours per month and should also earn the minimum amount set by the UIF administration to be eligible.
So incomplete or inaccurate information on the documents can cause the application process to be delayed and have to be repeated. This all slows down the time it takes for benefits to be processed and paid out.
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Error in Details
Therefore, giving correct information (including details of their bank account and certificate of service) according to the requirements set by the UIF, is essential. Otherwise, they would not be paid by the UIF timeously.
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Delays
One should wait 3 to 4 weeks after submitting the claim, before expecting a payout. If it takes too long to receive the claim, contact the UIF office for details and reasons for the delay. Delays can be caused either by the applicant or the administration, and may be between a few weeks, and up to a few months.
Verification of Account
After checking all the documents and declaring them complete and accurate, the claim will go through a moderator who will verify your account. After this process, a status is sent to the applicant known as “Paymaster close” which indicates that the application has been approved and payment is on the way. This should be received within days (rather than in weeks or months).
Methods for Quick Approval (to speed up your claim)
Use Current Surname
If someone is married they must provide their new surname (instead of using the previous one). And make sure that your surname reflected in your bank details match your home affairs details to expedite the process. A mismatch will always cause a delay in payment.
Online Applications
Please note, one cannot use both online and manual claims at the same time. Only one method, either online or manual, should be used by the claimant. Online can be done with the help of any smart device, while the manual is a time-consuming method. (So using the online method will lead to quicker approval).
Repetition of Documents
Should the applicant repeatedly send files and documents, they must not forget to send the salary schedule again as well, as this is the most important part of the procedure.
Make Frequent Calls
Applicants should make frequent calls to the department to check the history of their application and ask them if anything is missing, or if more information is needed. This way, your claim remains active, and the administration will keep it top of mind.
Who else benefits from UIF?
Relief to the Dependants of Deceased Contributors
UIF also gives relief to the dependants of deceased contributors. This means that close relatives of the person who died (and was registered with the UIF), are given access to their benefits.
Strict Process to prevent Fraudulent claims
The UIF takes steps to prevent fraudulent claims, which can be another reason for delays in receiving funds by claimants. For this reason, the UIF has introduced the payment verification process before releasing money into the bank accounts of applicants.
FAQ’s
Do foreigners pay UIF in South Africa?
From the employer’s perspective, every foreign employee has 1% deducted from their salary for their UIF contribution.
To benefit from the UIF you have to be a contributor to the fund while you are employed.
When you apply for this benefit, if you are eligible, there are various steps you can take to speed up the process for the payout. The most important is to submit all necessary documents with accurate information.
Please note that Paymaster does not handle UIF cash services; for UIF cash services, please contact Cash Paymaster Services (Pty) Ltd (CPS). Email: Info.uifqueries.co.za or phone Telephone Number(s): 012 337 1997 (Switchboard), 0800 030 007 (Call Centre).
For all your payroll needs trust Paymaster for accuracy, reliability, and efficiency. Contact us for more information at ian@paymaster.co.za or 082 898 5006.
