- The Unemployment Insurance Fund has announced that it will start paying employees directly
- This means that while companies will apply for Covid-19 TERS relief, the employees will receive the funding
- Numerous complaints had been received of the funds never reaching the intended recipients and this is set to resolve the situation
The Unemployment Insurance Fund will now be paying employees Covid-19 TERS relief funds directly.
eNCA reports that the UIF has paid more than R15.7 billion to 2 288 295 employees as part of the relief programme.
In a statement issued by the Department of Employment and Labour, Minister Thulas Nxesi commented that:
“Of importance is that we have now started paying workers directly to their bank accounts not through employers only. What this means is that workers do not have to wait until employers transfer their benefits to their accounts. While the claim is submitted by the employer who would have all the information that is pertinent to make the payments, the actual payment goes straight to the account of the worker thus eliminating further waiting period."
Nxesi explained that the department has heeded the call to be more responsive at a time where it is being flooded with applications for financial assistance.
The UIF also has a temporary employer and employee relief scheme for businesses in distress for companies with a turnaround plan for the next year.
Briely.co.za reported that Minister Nxesi had revealed the department had been inundated with reports of companies applying for and receiving the funds, but withholding it for the employees it was intended for.
With the Covid-19 crisis placing immense financial stress on South African citizens, this announcement will hopefully be the answer employees were looking for.
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