UIF COVID-19 fund pays out R16.5 billion

Tuesday, June 2, 2020

Having already paid out R16.5-billion in Covid-19 Temporary Employee/Employer Relief Scheme (TERS), the Unemployment Insurance Fund (UIF) has vowed to ensure that outstanding payments are promptly processed.

In a statement on Monday, the Department of Employment and Labour, of which the UIF is an agency of, reiterated that the Fund is making good progress on its promise to capture and process May COVID-19 relief benefit applications.

“Payments this time around should be a lot quicker as the UIF already has the details for most of the claimants,” said the department.

On Monday, a total R1 billion had already been processed for payment for 252 378 workers represented by 26 648 employers.

At the same time, the Fund has also processed and paid R 331 530 550.90 for 79 507 workers represented by 13 503 employers which is part of the outstanding payments for April.

 “As we indicated when we addressed the country last Friday, we are committed to ensuring that to the extent possible, the department through the UIF plays its role in shielding workers from the worst effects of the pandemic,” said Minister Thulas Nxesi.

The Minister added that cash payments are being provided to workers as a result of the COVID-19 pandemic.

“We are doing this by providing cash payments to workers who may have found themselves in the lurch as a result of lockdown. The payments have been significant in saving at least 3-million workers from poverty,” said the Minister.

A new enhanced system, which kicked into gear last week, will make it easy to resubmit claims as in cases where the information has not changed; the claim will be processed immediately on confirmation by the employer.

“But if information has changed, employers will still be required to capture employee’ details directly on the system or attach the CSV file.”

The following documents must be attached for the May submission:  

  • Proof of TERS payment to employees for April such as electronic bank statement, a letter of acknowledgement of payment between employer and employee (Mandatory),
  • Re - upload employer bank confirmation letter or latest bank statement,
  • Signed approval or acceptance letter from the UIF for April payments between employer and employee, and
  • Proof of refund to the UIF attached if applicable.

 “I have been assured that we would realise significant improvements in terms of payment turnaround time from claim submission. Already, with all the information supplied, the UIF was able to pay some claims in 24 hours at best or 48 at worst which is far more from when we started around April 16, “ said Minister Nxesi.

About 3.2 million workers represented by 279 111 employers have benefitted from the UIF’s R16.5 billion.

“Of this amount, R442 million has been paid through direct deposits to 99 269 workers’ bank accounts. The claims were submitted by 6 374 employers,” the Department said.

For further information, the public can log on to the department’s www.uifecc.labour.gov.za/covid19  website or reach the UIF on the toll-free number 0800 030 007. – SAnews.gov.za