What happens to my UIF contributions if I resign?

1. Before You Hit Send on Your Resignation Letter

South Africans contribute 1% of their income to the Unemployment Insurance Fund (UIF) with the knowledge that when they lose their job, there is some recourse. With some recent changes to this benefit and the confusion that surrounds it, it is important to know that many of the rules still apply.

Those who are unclear with these rules may land themselves in hot water when they rely on these payments and can’t make ends meet due to some technicality.

2. The Conditions for UIF to Pay Out

Standing in the queues to register for unemployment benefits only to get to the consultant to get rejected, adds insult to injury.

To avoid this, citizens are recommended to know their rights and adhere to the guidelines. The South African Government provides clear guidelines for the unemployed to follow. Also, the conditions for payment are equally clear.

3. When An Employer Terminates A Contract

This is possibly one of the most important aspects of UIF. The fund is not in place for those who wish to test the waters on their own before heading on to the next job.

It’s specifically designed to act as a buffer between jobs when employees had no other option but to leave their company. The employer terminating the contract is one of them, however, this also has its restrictions.

4. Those Who Contribute To the Fund

Although the fund is initiated by the Government, it still requires the South African workforce to contribute. Currently, the contributions are at 2% of the worker’s income. The employer contributes 1% and the employee contributes 1%. Those who find themselves between jobs but have not contributed to the fund will have no grounds to claim benefits.

5. Employees Who Are Not Eligible To Claim

The list of those who can’t claim is quite extensive, and once again the Government website provides all the answers.

Those who can’t claim include:

Workers who already claim benefits from the Compensation Fund

Those who claim benefits under the Labour Relations Act

Workers who were suspended due to fraud

Have quit their jobs

Do not report at the dates and times set for them

Finally, if they refused further training and advice from their employers

What About Those Who Have to Quit their Jobs?

Although there is a resounding “no” to the question as to whether employees can claim UIF benefits if they quit, there are some mitigating instances where this is allowed. The fund is designed to protect the worker and when there are material changes to their personal or work conditions, these need to be honoured. Workers who find themselves forced to quit their jobs can approach the Commission for Conciliation, Mediation, and Arbitration for help. The following are some of the instances where workers have grounds to claim unemployment benefits from the UIF.

Material Changes to the Work Conditions

These changes could include factors such as a change of location of the employer or changes in the work contract that make the conditions less favourable to the worker. Additionally, this could include a reduction in pay or even an increase in costs that prevent the worker from maintaining their personal standards.

Other work conditions that could make it tough for workers to remain with an employer include workplace discrimination, harassment, unsafe work conditions, or even those who are forced to quit in lieu of discharge, such as a forced retirement.

Personal Changes that Could Affect the Worker

Domestic circumstances are one of the main personal reasons that workers find themselves forced to quit. These circumstances could include medical reasons or even family illness. Domestic violence and spousal moves are also listed as reasons workers may have grounds to claim.

Those who are considering the move should consult the rules and restrictions of the fund first before making the move. Many workers don’t realise that they can only claim from the fund a number of times and that there is a ceiling. Industry experts and local government publications should be checked before making a lifetime decision.

For instance, the benefit can only be claimed for a maximum of 34 weeks, depending on how long they’ve contributed to the fund. They also need to register for these benefits within six months of the termination.

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Complete Guide to NSFAS Online Loan Application for South African Students (2025)

If you are a South African student looking to pursue higher education but are facing financial difficulties, the National Student Financial Aid Scheme (NSFAS) is one of the most accessible funding options available. NSFAS provides financial aid in the form of bursaries and loans to qualifying students at public universities and TVET colleges in South Africa.

This guide will walk you through everything you need to know about the NSFAS loan application process, from eligibility requirements to application steps and frequently asked questions.

📌 What is NSFAS?

The National Student Financial Aid Scheme (NSFAS) is a government-funded financial aid scheme aimed at helping students from low- and middle-income households to access tertiary education without the burden of upfront fees.

NSFAS offers both bursaries and income-contingent loans:

  • Bursaries: For eligible students who meet academic and household income criteria (especially for TVET and university students).
  • Loans: For students who do not meet all bursary criteria or who are pursuing postgraduate qualifications not funded under bursary schemes.

✅ Who Qualifies for an NSFAS Loan?

To qualify for an NSFAS loan (especially for postgraduate students or programs not funded under the bursary system), you must:

  • Be a South African citizen.
  • Be financially needy, with a household income of less than R350,000 per year.
  • Have a valid South African ID.
  • Be enrolled or accepted to study at a public university or TVET college.
  • Not be funded through another bursary program that covers all expenses.
  • Maintain satisfactory academic progress (returning students).

📚 Courses Funded by NSFAS

NSFAS primarily funds undergraduate qualifications, but certain postgraduate programs (e.g., PGCE, postgraduate diplomas in education, and professional courses like LLB) may be considered under the NSFAS loan scheme, not bursaries.

If you’re studying:

  • Undergraduate degree or diploma: You are likely eligible for a full NSFAS bursary.
  • Postgraduate study: You may qualify for a loan, depending on the course and funding availability.

📄 Required Documents for NSFAS Application

When applying, make sure you have the following documents scanned and ready:

  1. Certified copy of your South African ID or Smart Card.
  2. Parent(s) or guardian(s) ID documents.
  3. Proof of income (latest payslips, UIF, or affidavit if unemployed).
  4. Consent Form signed by your parent(s)/guardian(s) to allow NSFAS to verify income.
  5. Proof of registration or acceptance at a public institution.
  6. Academic transcripts (for continuing or postgraduate students).

🖥️ How to Apply for an NSFAS Loan Online

Step-by-Step NSFAS Online Application Process (2025)

  1. Visit the NSFAS Website

    Go to: https://www.nsfas.org.za

  2. Create an Account

    • Click on “MyNSFAS” and register your profile.
    • You’ll need a valid email address and South African cellphone number.
    • Choose a strong password and verify your account via email or SMS.

  3. Login and Start the Application

    • After registration, log in to your MyNSFAS account.
    • Click on “Apply” to begin a new application.

  4. Fill in Your Personal Details

    • Input your ID number, name, surname, and other details exactly as they appear on your ID.
    • Provide household income information and living arrangements.

  5. Upload Required Documents

    • Upload all supporting documents in PDF or JPEG format.
    • Each document must be clear and under the size limit specified.

  6. Submit Your Application

    • Review your application for accuracy.
    • Click “Submit” and wait for a confirmation message.

  7. Track Your Application

    • Log in regularly to check your application status.
    • You will be notified via SMS and email at each stage of the process.

🗓️ Important NSFAS Dates (2025)

  • Application Opening Date: September 1, 2025
  • Application Deadline: January 31, 2026
  • Appeals Period: February 2026 (if rejected)
  • Disbursement: After registration and approval

Note: Dates are subject to change; always confirm on the official NSFAS website.

💸 What Does the NSFAS Loan Cover?

NSFAS funding typically includes:

  • Tuition fees
  • Registration fees
  • Accommodation (if living away from home)
  • Meals and transport
  • Learning materials (e.g., textbooks)

For loans, repayment is only required once you start working and earn above a threshold (around R30,000 annually, but subject to change).

🔄 NSFAS Loan Repayment

Repayments are:

  • Income-contingent – you only repay when you can afford to.
  • Administered by DHET (Department of Higher Education and Training).
  • Interest-bearing, but interest rates are low and favorable.

You can also apply for a partial loan conversion to a bursary if you perform well academically.

🔁 How to Appeal a Rejected NSFAS Application

If your application is rejected, you may submit an appeal via your MyNSFAS portal:

  1. Log into your MyNSFAS account.
  2. Click on “Track Funding Progress”.
  3. If rejected, click on “Submit Appeal”.
  4. Upload any missing or corrected documents.
  5. Provide a clear explanation or motivation.

📱 NSFAS Contact Information

📝 Final Tips Before Applying

  • Apply early to avoid system overload near the deadline.
  • Use your own email and cellphone number (do not use someone else’s).
  • Double-check that all your documents are certified and legible.
  • Keep a copy of your submission confirmation for reference.

By following this guide, you can confidently apply for NSFAS funding and move one step closer to achieving your academic and career dreams—without the burden of immediate financial pressure.

 

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