Any UIF contributing business facing distress , on lockdown and unable to pay salaries due to lockdown can apply for the COVID-19 UIF Benefit. 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 UIF 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 forCOVID-19 UIF Benefit?
• 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
Do informal businesses like spaza shops, hair saloons etc. qualify?
No, informal businesses won’t qualify for this benefit, instead they must check with the Department of Small Business for support they offer.
As a domestic worker, can my employer apply for the Covid19TERs Benefit?
Yes, your employer can apply for the Covid 19 TERS Benefit provided they have been contributing to the UIF.
Do people who work for commission and freelancers qualify for Covid19 TERS Benefit?
No, freelancers and commission workers do not qualify, as they are not covered under the Unemployment Insurance Amendment Act.
How long does it take to process the application?
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
How will UIF ensure that ghost employees don’t suddenly mushroom and claim?
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.
If I benefit from COVID19TERS, will my credits be affected if I claim other benefits in the future?
NO, the COVID19TERS will not affect any credits because it’s a special benefit.
If my employer claims for Covid19 TERS Benefit, and later retrench me can I be able to claim for the Unemployment Benefit?
Yes, you will be able to claim for the Unemployment Benefit since it is de-linked to the other benefit structure.