3) Types of compulsory insurance

• Unemployment Insurance Fund (UIF)

  • The Unemployment Insurance Fund was established to assist employees with financial aid should they become unemployed.
  • Unemployed workers may not claim from the UIF if they resign or get dismissed.
  • Employees must work at least 24 hours a month before required to contribute towards the UIF fund.
• The benefits of the UIF

  Unemployment benefits

  • The UIF Act pays unemployment insurance benefits up to 10 days which is in line with the BCEA.
  • If employers terminates service of employee, the employee may apply to UIF for benefits.
  • To qualify for benefits, unemployed employees must register with Department of Labour as work seeker.
• The benefits of the UIF

  Temporary Employer/ Employee Relief Scheme (TERS)

  • All employers and employees who are registered with Department of Employment & Labour can apply for relief.
  • Scheme applies to employers who cannot pay workers and employees who will not get paid during period of lockdown.
• The benefits of the UIF

  Illness/ Disability benefits

  • Employee may apply for illness/ disability benefits if he/ she is an employed contributor to the UIF and is unable to perform his/ her duties because of illness/ disability.
  • Employees may not claim illness/ disability benefits if they refuse medical treatment.
• The benefits of the UIF

  Maternity benefits

  • Unemployed employee is entitled to receive these benefits for up to four consecutive months.
  • To quality, she must be receiving less than her normal wages while she is on maternity leave.
• The benefits of the UIF

  Adoption benefits

  • Contributing employer may claim adoption benefits if he/ she has legally adopted a child younger than two.
  • If both parents of an adopted child are contributing employees, only one parents qualifies for benefit.
• The benefits of the UIF

  Dependent's benefits

  • Dependents of contributor to UIF may claim benefit following person's death.
  • Dependent children under the age of 21 years are entitled to benefits if there is no surviving spouse or life partner.
• Road Accident Fund (RAF)/ Road Accident Benefit Scheme (RABS)

  • Amount that the victim of an accident may claim for loss of income is limited by legislation.
  • Accident victims are compensated for the loss of income as a result of accident.
  • Contributions to the RAF/ RABS are collected by way of levy on fuel used for road transportation.
• Compensation Fund/ Compensation for Occupational Injuries and Diseases Act (COIDA)

  • Compensation for Occupational Injuries and Diseases Act covers occupational diseases and injuries sustained by employees during the performance of their official duties.
  • Levy paid to Compensation Fund is responsibility of the employer.
  • No contributions from the employee are required towards the Compensation Fund.