UIF might be extended to a year

Wednesday, June 17, 2009

Pretoria - The Department of Labour is considering extending the period for the payment of the Unemployment Insurance Fund (UIF) by the employer to the employee to a year.

Currently, those who have been laid-of or retrenched, receive unemployment insurance for six months.

According to the department's spokesperson, Page Boikanyo, extending the period of receiving UIF contributions to a year, would translate to people getting a lesser amount spread over a year.

He further said the department would look at a new system that trains unemployed people in other areas.

"We are looking at introducing a new system whereby people who are retrenched are trained in other areas so they can be employed again in other sectors," said Mr Boikanyo.

The department encourages employers to contribute 1 percent to the Unemployment Fund while the other 1 percent is that of the employee.

The Unemployment Insurance Act and Unemployment Insurance Contributions Act apply to all employers and workers, but not to workers working less than 24 hours a month for an employer.

Domestic employers and their workers are also included under the Act.