UIF hits R40bn disbursement mark

14th August 2020 By: Simone Liedtke - Writer

UIF hits R40bn disbursement mark

Photo by: Bloomberg

The Unemployment Insurance Fund (UIF) has hit the R40-billion mark in Covid-19 Temporary Employer/Employee Relief Scheme disbursements in efforts to ease the financial difficulties faced by workers during the pandemic-induced lockdown.

Dubbed the “magical figure” that government committed to, Employment and Labour Minister Thulas Nxesi confirmed on August 14 that government had committed to an extension of the scheme until August 15 as a result of the disaster period change.

This means that, in the end, more funds will be paid out than what was initially promised.

“While we are proud of the achievement, we are also making sure that all the outstanding valid claims are paid as soon as all the information is received,” the Minister said.

He added that as part of the agreement reached at the National Economic Development and Labour Council, the UIF will, on August 17, start to process claims from July and August, while ensuring that outstanding claims from April, May and June are also “speedily settled”.

The R40-billion has covered over nine-million payments to workers through 779 429 companies that have submitted claims on behalf of workers.

For April, so far, a total of R20-billion has been paid to over four-million workers through 389 233 employers.

Payments for May stand at R10.9-billion for the benefit of over 2.7-million workers through 168 089 employers.

In June, the UIF disbursed R8.6-billion to over 2.3-million workers through 168 089 employers.

Payment of about R1.5-billion was made directly to certain employees, while a further R1.5-billion was paid out to documented and declared foreign nationals who have made South Africa their working home and more than R200-million has been paid to domestic workers.