UIF to compensate workers affected by Covid-19

Published Mar 24, 2020


DURBAN - Following President Cyril Ramaphosa’s announcement of a nationwide lockdown and plan to “flatten the curve”, a number of mitigating measures have been set to ease the effect the Coronavirus is having on South Africans.

The Minister of Employment and Labour made an announcement regarding the measures that have been put in place under these special circumstances, relating to the coronavirus outbreak and its impact on the Unemployment Insurance Fund (UIF) contributors.

The UIF will now compensate affected workers through a new “National Disaster Benefit”. This fund, like any other UIF benefit, is applicable only to those who make monthly contributions as required by the Contributions Act of 2002.

The fund also clearly stipulates that if an employer has to close down their business as a direct result of the coronavirus, then that employer can apply for the National Disaster Benefit from the UIF. The National Disaster Benefit will not be linked to the UIF’s normal benefit structure.

It will equate to the same amount as the minimum wage( R3500) per employee for the duration of the shutdown or a maximum period of three months. An employer cannot apply for the National Disaster Benefit and any other UIF benefit simultaneously.

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