uif
Photo: UIF
  • The UIF's scheme for special Covid-19 payouts - of up to R6,730 a month - has been unexpectedly extended until mid-August. 
  • The so-called TERS payments were supposed to end after June.
  • The UIF has faced criticism for the TERS process.
  • For more articles, go to www.BusinessInsider.co.za.

In a surprise move, government has extended the  Covid-19 Temporary Employer/Employee Relief Scheme (TERS) until the middle of August.

Workers who are put on leave, have been laid off temporarily, or whose employers can’t afford to pay their full salaries due to the coronavirus crisis were entitled to payouts in April, May and June. Previously the UIF and government confirmed that the scheme would end after the June payments were made. 

“Following due diligence and consultation with the Unemployment Insurance Fund actuaries, and in line with the President's decision to extend the life of the Disaster Management Act until 15th August, we have taken the decision to similarly extend the Covid-19 Ters benefit until 15th August 2020," deputy minister of employment and labour Boitumelo Moloi announced on Tuesday. Minister Thulas Nxesi is currently in hospital with Covid-19 related illnesses.

But Moloi added that the department is considering closing the April, May and June applications at the end of July 2020. So far, the UIF paid out R31 billion in 6.9 million payments.

The maximum a worker will get is R6,730 a month (if you earn more than R17,700) – while the minimum amount is R3,500.

The UIF has faced huge criticism about the TERS process. Many companies have complained to Business Insider SA, citing applications that have not been processed or paid, to some applications being denied without explanation and a general failure to get a response from the UIF.

READ | Thousands of dead people ‘claimed’ for the UIF's coronavirus payouts

A survey among the 10,000 members of the National Employers Association of South Africa (NEASA) showed that 88% of companies still haven’t received TERS payments for June. Of the companies which did get money, only 68% were paid in full.

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