what happens to my uif contributions if i resign

What Happens to My UIF Contributions if I Resign?
Unemployment Insurance Fund (UIF) contributions are made by both employees and employers in South Africa to provide financial support to employees who become unemployed. Many employees may wonder what happens to their UIF contributions if they resign from their job. This article will explore the fate of UIF contributions in such circumstances.
Understanding UIF Contributions
The UIF is a government-managed fund that provides short-term relief to workers who lose their jobs, go on unpaid maternity leave, or are unable to work due to illness or adoption. Both employees and employers contribute to the fund, with the employee’s contributions deducted from their salary by the employer.
Resignation and UIF Contributions

When an employee resigns from their job, their UIF contributions continue to be held in the fund. These contributions do not get refunded to the employee but are kept in the UIF for future use in case the employee becomes unemployed.
Claiming UIF Benefits after Resignation
After resigning from a job, an employee can still claim UIF benefits if they meet certain criteria. The employee must be actively seeking employment and be available to work. Additionally, there are specific time frames within which the employee must register as a jobseeker with the Department of Labour and submit their application for UIF benefits.
How to Claim UIF Benefits after Resignation
After resigning, the employee should visit their nearest Department of Labour office to register as a jobseeker and apply for UIF benefits. They will need to provide relevant documents such as their South African ID, proof of registration as a jobseeker, and a record of employment history. It is important to provide accurate and complete information to avoid delays or complications in receiving UIF benefits.
Calculation of UIF Benefits
The amount of UIF benefits an employee can receive is based on their previous earnings and the length of their UIF contributions. The benefits are calculated as a percentage of the employee’s average salary over a specific period, up to a maximum allowable amount.
Reduction in UIF Benefits
If an employee resigns voluntarily and without justifiable reasons, the UIF benefits they may be eligible for can be reduced by a certain percentage. This reduction is intended to discourage employees from misusing the system by voluntarily resigning to claim UIF benefits without legitimate reasons.
Other Factors to Consider
It is essential to note that UIF benefits are designed to provide temporary relief during periods of unemployment. They are not intended to replace a full salary or provide long-term financial assistance. Employees should actively seek new employment while receiving UIF benefits to improve their chances of finding a new job.
Conclusion
Resignation from a job does not result in the immediate refund of UIF contributions. Employees who resign can still claim UIF benefits if they meet the necessary criteria and follow the application process. It is important for employees to understand their rights and obligations regarding UIF contributions and benefits to make informed decisions during their career journeys.