UIF boosts Ters budget to R2.4 billion to save jobs and businesses

The Unemployment Insurance Fund (UIF) has significantly increased its budget for the Temporary Employer-Employee Relief Scheme (Ters).

In a statement released on Monday, the fund said the budget for the current financial year now sits at R2.4 billion from R400 million in the last financial year.

According to the UIF, the move comes in response to worsening economic conditions that have put thousands of jobs at risk.

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Increase in budget

The decision to expand the Ters budget follows alarming job loss trends in South Africa.

“With the increase in [the] Ters budget, the UIF is taking a proactive response to volatile economic trends that threaten the livelihoods of impoverished workers and the sustainability of businesses,” the UIF said.

The UIF stated that the additional funding is expected to reduce retrenchments and promote economic stability.

“An increased Ters budget also means greater job preservation will be facilitated through the provision of salary support for more employees who might otherwise have been laid off,” it added.

During the 2023/2024 financial year, the Commission for Conciliation, Mediation and Arbitration (CCMA) reported that 38 428 employees were at risk of retrenchment.

“A total of 14 887 jobs (39%) were saved through various interventions, including TERS.”

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Expanded relief for businesses

According to the UIF, Ters is a programme under the Department of Employment and Labour providing financial assistance to struggling businesses for up to 12 months.

The scheme is funded by the UIF, which covers employee salaries, allowing companies to focus on restructuring and recovery while only being responsible for social costs such as provident funds and medical aid contributions.

“Since its inception, Ters has been instrumental in supporting businesses of all sizes and from a variety of sectors, including, amongst others, retail, manufacturing, hospitality and tourism, manufacturing and logistics,” the fund said.

The increased budget aims to extend this support to even more businesses facing financial distress.

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Application requirements

Employers looking to access Ters assistance must provide the following supporting documentation for evaluation:

• Audited annual financial statements for the past two financial years.
• Independently reviewed annual financial statements for companies not required to be audited.
• Independently reviewed management accounts if financial statements are older than three months.
• Termination of contract and bank statements for individual applicants.
• A business case detailing the reasons for financial distress and proposed solutions.

Employers can visit the CCMA’s official website form more details on Ters applications.

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