COVID-19 UIF PROCESS
• Any UIF contributing business facing distress, on lockdown and unable to pay salaries due to lockdown can apply.
• Companies are encouraged to apply on behalf of their employees using the e-mail address (COVID19ters@labour.gov.za)
• Automatic reply with all the required documents and step by step on the process to follow.
• Completed applications and documents must be submitted to Covid19UIF@labour.gov.za
• Hotline number: (012) 337 1997
Who has to apply for the Covid19 Relief Benefit?
• Employers who are unable to pay salaries of their employees during the lock down period can apply for the Relief Benefit.
How do I apply?
• The employer should send an email to Covid19ters@labour.gov.za
What is the deadline for the submission of applications?
• The Covid19ters Benefit is applicable for the lock down period, no applications will be entertained once the lock down is lifted.
Do employers who are not registered with UIF qualify for the Relief Benefit?
• No, an employer need to be registered with UIF to qualify for the Benefit.
• Companies who registered after the 15 March 2020 may not be eligible for the Benefit
No, informal businesses won’t qualify for this benefit, instead they must check with the Department of Small Business for support they offer.
Yes, your employer can apply for the Covid 19 TERS Benefit provided they have been contributing to the UIF.
No, freelancers and commission workers do not qualify, as they are not covered under the Unemployment Insurance Amendment Act.
Turnaround time to process the application is 10 days with complete documents (MOA, verifications, etc.)
The calculation of payment is based/informed by the last remuneration capped to the current ceiling of R 17 712.
The benefit amount (IRR) is then determined in line with the current sliding scale which ranges between 38% to 60%.
The PRINCIPLE is the “higher the remuneration the lower the replacement rate” ie., where the remuneration is R 20 000 the calculation will be based as if the worker received R 17 712 (ceiling).
Since this is the highest, the replacement rate will be 38%, which will be (38% of R 17 712 = (R 221.28 per day) = R 6 638.40 for 30 days or R 6 859.68 for 31 days).
UIF will take into consideration the current salary of the employee to determine the Income Replacement Rate applicable
When an employer submits a claim with a list of his workers, we will check it against our database. If we find workers who are not registered, the application will be returned back to the employers to provide to provide an explanation.
NO, the COVID19TERS will not affect any credits because it’s a special benefit.
Yes, you will be able to claim for the Unemployment Benefit since it is de-linked to the other benefit structure.
Given the administrative burden that comes with this disaster it will be impossible for UIF to process millions of applications.
UIF has started negotiations with partners such as Banks, Bargaining Councils, and other insurance companies to assist with payments of claims so that we ease the burden and fast-track the payments.
Where the Fund has agreements with Bargaining Councils or Employer Associations, the funds will be transferred to the Bargaining Council or Employer Association. Thereafter, the Bargaining Council or Employer Association will transfer to the individual companies to pay their employees.
Where the Fund has an agreement directly with the company, funds will be transferred to the company to pay the employees.
There are instances where an agreement with a company will be that the funds be paid directly into the employee’s account.
No, the MOU applies to companies that have more than 10 employees
Yes, if the application was approved prior to the 16 April 2020 the benefits payments will still be made.
The benefit is applicable for the lock down period.
No, labour centres are closed, however all UIF services will be available online.
• A Guide for electronic applications is available at www.Labour.gov.za
• An SMS will be sent to beneficiaries who have been receiving benefits payments to confirm whether their banking details are still the same as when they applied and that they’re still unemployed.
The employer has the right to let you stay at home for the period of the lock down, but they need to assist employees to apply for the Covid 19 TERS Relief Benefit so that employees do not lose income.
Beneficiaries who have been receiving benefits payment prior the lock down will continue receiving them, provided the benefits have not been exhausted.
UIF will send these beneficiaries SMSes requesting them to confirm their baking details and if they are still unemployed.