Unemployment Insurance Act, 2001 (Act No. 63 of 2001)NoticesCalculation of benefits in terms of Section 13Notice No. 98 of 2007 |
Notice No. 98
5 February 2007
GG 29594
Department of Labour
I, Membathisi Mphumzi Shepherd, Mdladlana, Minister of Labour, do hereby, in terms of Section 54(b) of the Unemployment Insurance Act, 2001 (Act No. 63 of 2001) as amended, make Regulations in order to give effect to the provisions of Section 13 of the Act.
M M S Mdladlana, MP
Minister of Labour
The calculation of credits is determined by Section 13(3) of the Unemployment Insurance Act. In terms of Section 13(3), a contributor is eligible to receive one day’s benefit for every six completed days of employment, up to a maximum of 238 days (34 weeks). A contributor will therefore be eligible to claim benefits for the maximum duration after being continuously employed for four years.
A practical application of Section 13(3) means that if a contributor is employed for a period of 4 years then the total days worked will be equal to 1460. If these 1460 days is divided by 6 days to allocate credits then the result would be 243.33 days which is in excess of the 238 days prescribed by Section 13(3) of the Act. There is thus 5 days in excess of what the Act prescribe.
To calculate correctly the number of days of benefits in terms of Section 13(3) and Schedule 2 of the Act, the following practical steps will be applicable.
Total weeks of benefit to be provided |
= 34 weeks |
Period of calculation of the 34 weeks |
= 4 years |
Unique weeks per year (34 weeks/4) |
= 8.5 weeks per year |
Unique number of days allocated over year |
= 8.5 x 7 = 59.5 |
Total credits to be allocated in 4 years |
= 59.5 x 4 = 238 |
With regard to the above and taking direction from the 4 year cycle and the maximum of 238 days credits referred to in the Act, the following methodology in allocating credits will be followed:
4 year cycle |
Days worked |
Application of maximum prescribed credits |
Year 1 |
365 |
59.5 |
Year 2 |
365 |
59.5 |
Year 3 |
365 |
59.5 |
Year 4 |
365 |
59.5 |
238 |