By: Natasha Archary
Earlier this week, Kaya Breakfast tackled a question posed by a listener about UIF contributions and resignation.
“Please explore a topic with the Labour dept why people like me who decided to resign from their jobs lose all their contributions to UIF funds & are not made aware of it when they make contributions. Where does my money that I worked more than 10yrs go to when I don’t benefit from it?”
Labour analyst Andrew Levy simplified the response by making the comparison between a regular insurance policy and the Unemployment Insurance Fund benefit.
If your company fires you or retrenches you, that would be a valid reason which would enable you to claim from the fund. However, if you resign it would be considered ‘self-inflicted’, therefore you would not be able to claim from the insurance regardless of your monthly contributions.
You would therefore be forfeiting all the monthly deductions, 1% of your income.
Listen to the conversation on breakfast below: