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COVID UIF Benefit Guidelines

The Minister of Employment and Labour has announced measures that their department will put in place to contain the spread the Corona Virus (COVID-19) and its impact on UIF contributors.

The Unemployment Insurance Fund will compensate affected workers through its existing Illness and Reduced Work Time benefits.

The guide is applicable to all employers who are registered with UIF and make monthly contributions as required by the Contributions Act of 2002.

National Disaster Benefit:

  • The employer may decide, as a direct result from the current Corona virus (COVID-19) pandemic to close their business for a period and send employees home. This constitutes a temporary lay-off. If the employer cannot pay his employees for this period, the employer can apply for the “National Disaster Benefit” from the UIF.
  • This benefit will be de-linked from the UIF’s normal benefit structure and therefore the normal rule that for every 4 days worked, the employee accumulated 1 credit day and maximum credit days payable is 365 for every 4 completed years, will not apply.
  • This benefit will be at a flat rate equal to the minimum wage (R3,500) per employee for the duration of the shutdown or a maximum period of three months, whichever period is the shortest.
  • If an employee is ill, temporary lay-off or unemployed for longer than three months, the normal UIF benefits as explained below will apply.

We have attached the following for guidance:

Attachments:

If you need any assistance please get in touch with us, we are here to help you!

Best regards,
Claire

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