Thulas Nxesi says UIF is experiencing pressure with Covid-19 TERS claims
The government established the Covid-19 scheme to ease some pressure for businesses and its employees who had to stop working during lockdown.
Minister of Labour and Employment Thulas Nxesi.
Minister of Employment and Labour Thulas Nxesi confirmed that the Unemployment Insurance Fund (UIF) has been experiencing some challenges with the Covid-19 Temporary Employer-Employee Relief Scheme (TERS) benefit applications.
The government established the Covid-19 TERS to ease some pressure for businesses and its employees who had to stop working during the lockdown.
“The system was never meant to face such a huge demand because it is very small, helping with 10,000 to 20,000 claims.
“Now we are talking millions. In terms of the system, we are not going to be able to deliver as we are supposed to,” Nxesi told eNCA.
READ: Incomplete applications hold up UIF relief
Nxesi said the UIF had placed in three shifts for its staff to deal with the high volume of claims and also added that the UIF had called for assistance from the South African Revenue Service (Sars) and some banks in the country.
The minister said workers in the informal economy were not able to qualify for the UIF payments as the legislation did not allow, however, he emphasised the matter was the reason why the government also established the Solidarity Fund.
Last Tuesday, the Democratic Alliance (DA) suggested that Sars should handle the UIF Covid-19 TERS benefit applications on behalf of the UIF if they are unable to deal with the number of applications.
“In the ordinary course of events, Sars collects UIF money paid over by employers and transfers it to the UIF.
“Sars has the expertise and systems to pay over the Covid-19 TERS benefit to employers swiftly,” said DA MP Michael Cardo in a statement.
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