Maruping said if all the required documentation was correct, UIF paid within 48 hours.
He said when an employer applied, they were required to indicate if there was an amount they would pay, then UIF topped up, or indicated they were not paying any amount at all in which case UIF would then pay based on the Income Replacement Rate of between 38% and 60% (R3,500 to R6,700).
“The amount due to the employee plus what the UIF pays should not exceed the employee normal remuneration except where the employee is earning less than R3,500.”
Maruping said that from the applications received, 59,000 had errors, for which an automatic message was sent back to the applicants. He said the IT system at UIF had not updated figures for him to state how many of the 59,000 applications were ultimately rejected.
Most of the errors related to the format in which the application is submitted.
Maruping explained some of the causes for the delays in payment.
“Just because an employer is paying UIF through Sars, it does not make the employer compliant with UIF. Section 56 of the UIF Act requires employers to declare their employees on a monthly basis through U-filing system, electronic declaration and UI-19. Most employers don’t adhere to this section,” he said.
“Since the majority use UI-19 to declare which is a manual process, the process takes long since we need to capture them individually… We are in a process of automating the U-19 declaration.”
A UI-19 is a form to declare your employees to the UIF.
“We have never had a case where the company waited for more than a month without being paid if all information is in good order.
“We process applications as [and] when received. Those that declare using UI-19 we run the file every three days to confirm the declaration and pay,” Maruping said.