UIF deducted but not paid? You can still claim your money, expert says

Thousands of South African workers could be at risk after Unemployment Insurance Fund (UIF) deductions were made from their salaries but never paid over by employers.

Labour law specialist Michael Bagraim says this is more common than many realise and often only surfaces when people lose their jobs and try to claim UIF.

Even if your employer didn’t pay, you may still be entitled to claim UIF.

For recently unemployed South Africans and those fearing retrenchment, the warning is clear: check your payslip.

UIF deducted but not paid: you can still claim

Bagraim says employers who deduct UIF but fail to pay it over are committing a crime.

“It’s criminal… that’s theft,” he said.

The issue came sharply into focus during the COVID-19 period, when many workers applied for TERS benefits and discovered their UIF contributions had never been paid.

Despite this, workers are not without protection.

Bagraim says the UIF still has a legal responsibility to pay out valid claims, even if the employer failed to contribute.

“They can’t say your employer didn’t pay, so we’re not going to pay you.”

What you can do right now:

- Report the employer to the UIF for investigation.

- Refer the matter to the CCMA as an unfair labour practice.

- Lay a criminal charge of theft with the police.

Importantly, the burden should not fall on the employee.

UIF claims: delays, dysfunction and frustration

Even when claims are valid, many South Africans struggle to access UIF payments, yet for many unemployed people, this is their only income.

Bagraim described the UIF system as ‘completely dysfunctional', citing unanswered calls, ignored emails and administrative failures.

This leaves unemployed workers without income while claims are delayed.

He says many cases involve long delays, repeated follow-ups, and little feedback from the fund.

“I’ve had over 10,000 queries concerning various problems with the UIF.”

Common UIF mistakes that lead to rejection:

While system failures play a major role, application errors can also delay or block UIF claims.

What to check before you apply:

- Details on the UI-19 form completed by the employer.

- ID numbers and personal information.

- That the reason for leaving is correctly captured.

A key issue is employers incorrectly listing ‘resignation’.

Workers who resign do not qualify for UIF, and this can lead to automatic rejection.

In some cases, this may be done deliberately.

Another common mistake is waiting too long to apply.

Although workers have up to a year, Bagraim says claims should be submitted as soon as possible.

Fear and silence around UIF abuse

Some workers are too afraid to report employers who fail to pay UIF contributions.

Bagraim says he has personally laid criminal charges in cases where entire workforces were affected.

“If they’re not paying UIF, they might also not be paying PAYE or compensation fund contributions.”

That raises broader concerns about financial misconduct and worker protection.

What this means for unemployed workers

If you’ve lost your job, here’s what matters:

- You may still be entitled to UIF, even if your employer failed to pay.

- You have legal options to act against employers.

- Delays are common, but claims must be pursued.

With unemployment high and financial pressure mounting, UIF remains a critical safety net, but accessing it can be a battle.

Also read: UIF delays and missing payments hit unemployed workers

- ‘Absolute debacle’: jobless workers left waiting for UIF (People go months without income as UIF claims stall and calls go unanswered.)

- Waited a year for UIF: how delays are hitting the unemployed (A shocking case shows just how long it can take to get money owed.)

- UIF deductions taken — but not paid over (Officials confirm some employers are failing workers, leaving claims unpaid.)

For more information, listen to Bagraim on 702/CapeTalk’s Early Breakfast with Africa Melane using the audio player below: