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Compensation Claims Lower Than Expected As The Picture Becomes Clear Of Industries Most Impacted By UIF

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Compensation Claims Lower Than Expected As The Picture Becomes Clear Of Industries Most Impacted By UIF

Employment and Labour Minister Thulas Nxesi
Employment and Labour Minister Thulas Nxesi

21st August 2020

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While the number of claims for compensation as a result of sickness acquired in the workplace because of the Coronavirus pandemic are still going up, it is notable that that very few people have lodged death claims as a result thereof.

In fact, only one funeral has been paid for – R18 251 in the period since the onset of the pandemic.

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“This is a far better picture than we anticipated. While it is early to make conclusions, it does seem that we got off more lightly than we feared. This is good news but off course one death is one too many,” says Compensation Fund Commissioner Vuyo Mafata.

According to the figures, a total of 4916 COVID-19 claims have been received so far – 3240 directly to the Compensation Fund and a further 1539 to Rand Mutual while Federated Employees have received 137 claims.

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Rand Mutual, which operates under licence as granted by the Minister of Employment and Labour and covers mostly workers in the mining and iron and steel industries has paid out R3.2-million in dependent benefits while the CF has paid R419 182.85 in medical aid claims for workers who have contracted COVID-19 while on duty.

Of the 3240 claims received by the CF, 1847 come from the Western Cape followed by Eastern Cape with 666, Gauteng with 398, KwaZulu-Natal with 225, Mpumalanga 65, North West 29, Northern Cape 7 and Limpopo 3. 

The CF has accepted liability to 2097, repudiated 443 while 700 cases await adjudication. Almost 80 percent of the cases at CF have affected women.

The claims received by Rand Mutual shows that Gauteng has received 1122 claims, 147 in the Eastern Cape, 60 in the WC, 71 in KZN, 35 in NW, 25 in the Free State, 21 in Limpopo and 58 are unknown. Of the 1539 claims received so far, 1319 are pending adjudication while 216 have been repudiated.

Federated employers who represent workers mostly in the construction sector has received 137 claims – mostly from the Gauteng (66), Western Cape (28), Eastern Cape (11), Northern Cape (9), North West (9), KwaZulu-Natal (8) and one (2) in Mpumalanga.

Meanwhile, a picture is emerging on the assistance the Unemployment Insurance Fund gave different industries as part of the R40-billion that it has paid so far since March 26 to ease the burden of the Covid19 lockdown.

The personal services industry has been the biggest beneficiary of the Temporary Employees Relief Scheme with over R10-billion having been disbursed to workers in this industry benefitting 2 620 115 employees.

This industry includes boarding houses, cafes, restaurants, nightclubs, laundries and dry cleaning depots, barbers, beauty shops, funeral undertakings, crematoria, cemetery boards, advertising agents, and collection agencies.

The disbursements by UIF which is an agency of the Department of Employment and Labour further saw R9-billion pumped into the trade industry. This include market agents, fish, poultry-, or game dealers, installers and assemblers of computers, household electrical appliances, televisions, radios, armature winding, taxidermist, pedal cycle or sewing machine dealers including repair and assembly thereof, photographers, hide, skin and wool merchants or brokers, and makers of feather dusters.

In this industry, 2 218 571 employees have benefitted.

The building industry was third with just over R2-billion disbursed to 496 981 employees. 

The rest of the industries are: iron with R2-billion, professional services with R1.9-billion, air services with R1.3-bullion and Mining with R1.2-billion. The rest of the industries like educational services, food and and agriculture were just below the billion rand mark.

The UIF is also continuing to ensure that all the valid outstanding claims are processed and have availed employers a number of tools to ensure that they can correct and update missing information.

 

Issued by: Department of Employment and Labour

 

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