UIF Covid-19 TERS disbursements under the spotlight
29 May 2020
The Unemployment Insurance Fund (UIF) has paid in excess of R15 billion to beneficiaries.
The employment and labour department confirmed this in a statement on the UIF Covid-19 TERS benefit disbursements update and guarantee of sustainability of funds.
The department added that it represents the most paid out by the UIF in a lump sum within five weeks.
“The money paid out to beneficiaries thus far had a direct impact on 3 million workers, ensuring that livelihoods are protected against the devastating effects of Covid-19.”
According to the employment and labour minister, Thulas Nxesi, the negative impact of Covid-19 would continue to be felt in South Africa for the foreseeable future.
“We expect an increase in labour-related disputes due to retrenchments and termination of employment as employers try to stay afloat. This would undoubtedly place further strain on our ability to meet our social security obligations to the public”, he said.
On Thursday at Nedlac, social partners will look at the UIF’s technical and financial capacity to continue to pay out TERS benefits in the long run.
“Social partners will also look at other issues relating to their mandates and how they can collectively respond to the various challenges within the context of the move to alert level 3.”
The minister called on employers to consult broadly on decisions impacting on job security such as intentions to lay-off workers.
“Retrenchments must be the last resort out of all the available remedies to the challenges we face.”
Covid-19 TERS applications for May opened today.
- Economic measures for COVID-19 under the spotlight
- UIF claims and remuneration during lock-down – Covid-19 talking points
- Mitigating the financial impact of #Covid-19 and the nationwide #lockdown on employers and employees