Further job cuts could put strain on South Africa’s coronavirus financial support: fund commissioner
An increase in job cuts could affect the Unemployment Insurance Fund’s (UIF) ability to provide much-needed coronavirus support to employees, says UIF commissioner Teboho Maruping.
Maruping said in a statement on Friday (19 June), that the ‘biggest worry’ the fund now faces is the number of jobs that are being shed, or are going to be shed, and how this will put a strain to the liquidity of the fund into the future.
“With the announcement by President Cyril Ramaphosa this week on advanced level 3 of the lockdown, a lot more people will be going back to work in various sectors. This will partly relieve the fund. This is a good time for employers to do right and declare and contribute for workers to the UIF.
“If ever UIF demonstrated how critical it is to the lives of workers, the contribution that it has made during the lockdown should be evidence enough. We hope those companies that have not declared their workers will do right and declare all workers,” he said.
The commissioner added that he has instructed the fund to ensure that going forward, it will find the best ways to remain liquid while ensuring that they make the difference to the workers who need them the most at the moment.
In May, the UIF disbursed close to R6 billion to 1,440,757 individuals to help them cope with the worst effects of the lockdown. Cumulatively since 16 April, the UIF said it has paid over R23 billion to 3,663,932 workers represented by 322,422 employers.
The relief payments are part of the basket of services government has laid out to different sectors as a means to ride out the worst of the Covid-19 pandemic which has seen businesses close and workers left without an income.
The UIF says it has plugged this hole for most workers who are able to take care of their families with this income replacement.
Read: More businesses in South Africa are closing because of lockdown
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