Losing your primary means of income can be extremely difficult. Suddenly, you have a bunch of bills to pay and no way to pay them. On top of that, you still need to eat and keep your car’s reserve light at bay. 

The key to overcoming the loss of your income is to not give up. If you keep trying to find a solution, you will. Hold fast and keep hope alive.

Here are some practical bits of advice for how to keep your head above water when you lose your income:

Apply for UIF

The Unemployment Insurance Fund (UIF) is a government-run fund put in place to protect legitimately employed South Africans from a sudden loss of income. However, only workers who were fired or retrenched are eligible. The UIF also makes allowances for mothers who need to take maternity leave. 

All legally employed individuals in South Africa have to pay a monthly contribution to UIF. If you haven’t ever contributed to UIF, you won’t be eligible. If you resigned or absconded from your job, you also cannot claim UIF.

If you qualify for UIF, however, you can claim between 38% and 58% of your gross salary, capped at a ceiling salary of just less than R15 000, for up to 12 months. This can provide temporary relief when you have no other way of earning an income.

Keep Going, Keep Growing

When you lose your job, it’s tempting to fall into depression and give up your hopes of employment. But nothing is more important than fighting that temptation.

As soon as you’re able, start job hunting in earnest. This means revising your resume, updating your LinkedIn profile, sprucing up your social media accounts, and signing up for whatever job search platforms you can find online.

Make job hunting your full-time job. Don’t be seduced by the television. Make it a personal goal to apply for a certain number of jobs per day. Importantly, pay close attention to the quality of your applications. Sending out 100 slapdash applications will do you no good. Rather, focus on carefully crafting 10 tailored cover letters and adjusting your CV accordingly to align with each company you apply to. 

Importantly, if you’re struggling to find a job that meets your income demands, it might be worthwhile to settle for something that pays a little less—at least for the time being. After all, earning 60% of your original salary is better than earning nothing. You can always work your way up again once you’ve got your foot in the door.

Zero Debt aims to help individuals find financial freedom by overcoming their debts and adopting healthier financial management practices. Contact us today to find out more about how we can help you navigate this stressful financial period. 

FAQs

1. What is the Unemployment Insurance Fund (UIF)? The Unemployment Insurance Fund (UIF) is a government-run fund in South Africa designed to provide temporary financial relief to workers who lose their jobs through dismissal or retrenchment. It also supports those who take maternity leave. However, only legally employed individuals who have contributed to UIF are eligible.
2. How much can I claim from UIF? You can claim between 38% and 58% of your gross salary through UIF, with a cap at a ceiling salary of just under R15,000 per month. Claims are valid for up to 12 months, providing temporary relief during unemployment.
3. Can I claim UIF if I resigned from my job? No, you cannot claim UIF if you resigned or absconded from your job. UIF is only available to workers who lost their jobs through dismissal, retrenchment, or maternity leave.
4. How can I stay motivated while job hunting? To stay motivated while job hunting, make job searching your full-time job. Update your CV and social media profiles, and apply for jobs regularly. Focus on quality rather than quantity—tailor your applications to each job to increase your chances of success.
5. Should I accept a lower-paying job if I can’t find one that matches my income? If you’re struggling to find a job that meets your income expectations, it may be wise to accept a lower-paying position temporarily. Earning a portion of your previous salary is better than earning nothing, and you can work your way up once you’ve secured employment.
6. How does Zero Debt help with financial management? Zero Debt assists individuals in managing their debt through services such as debt counselling, debt review, and debt consolidation. We help you consolidate your debt into one affordable monthly payment and provide guidance on how to improve your financial health during stressful times.
7. What are the benefits of debt consolidation? Debt consolidation simplifies the management of multiple debts by combining them into a single monthly payment. This often leads to lower interest rates, making it easier to manage your financial obligations and freeing up funds for savings and investments.
8. How can Zero Debt help me during a period of unemployment? During unemployment, Zero Debt can help by assessing your financial situation and offering debt solutions, such as debt consolidation or debt review, to reduce your financial burden and improve your chances of regaining financial stability.