The Unemployment Insurance Fund (UIF) is the help given to unemployed workers looking for a job. UIF aims to give you some relief in the hard phase of your life so you don’t feel stressed when you have no income source. Your employer has to register you for the UIF and contribute monthly to claim the UIF benefits.
All registered individuals can claim UIF benefits anytime when they are no longer employed. However, many wonder if they can get UIF credit in lump sum. If you are one of those this blog is for you.
Does UIF Pay a Lump Sum?
Good News! UIF does pay a lump sum but depending on how you are affected by the circumstances. The condition to claim the UIF lump sum is the death of the employed member of the family.
It will only be received by the deceased family as I mentioned earlier the UIF lump sum will only come with the death benefit. The UIF benefits are paid every month to the unemployed but only the death claim is paid in lump sum to the dependents of the deceased.
The dependent will get a lump sum if the deceased person is contributing towards the UIF in his employment phase. The dependent might receive R25 000 from UIF as a lump sum at one time only but this depends upon the deceased contribution towards the UIF.
While giving a lump sum the Department of Labour will check two things how much is your earnings in the last four years and how much you have contributed to the UIF in the last four years.
To claim the lump sum from UIF is a bit difficult as normally people get the monthly grant from the UIF. The lump sum payment is only for the dependent of the deceased.
If you want to claim you will have to provide the necessary supporting documents and go through a long verification process before getting the lump sum. Receiving UIF pay in a lump sum is nearly impossible if you fail to provide all the related documents and details or if you fail to prove yourself as the deceased dependent.
What Needs to be Done to Claim the Lump Sum?
- If you want to claim the UIF lump sum you must apply as a dependent of the deceased person within eighteen months of the death of the UIF registered employee and contributor.
- The application can be submitted by the spouse, parents, children, or the nominated employee.
- If you fail to apply for a death claim to the UIF within the given time frame, your application will be rejected.
You can apply for reconsideration only in that case if you can proof that you visited the office. Then the commissioner will go through your claim application and decide on the reason provided that you can get UIF payment as a lump sum or not.
UIF never pays a lump sum unless and until you are claiming death benefits. To receive the lump sum you have to satisfy the Department of Labour with the verification process that you are the dependent of the deceased person. If you fail to do so you won’t be getting any payment.