BL Premium reports that the special Covid-19 lay-off benefit that will operate through the Unemployment Insurance Fund (UIF) was finalised on Tuesday when business, labour and government finally reached agreement on the scheme in Nedlac.
The scheme is the single biggest government initiative to provide relief to those in formal employment who will lose their income due to the lockdown. The UIF has R30bn in immediately accessible funds drawn from its accumulated reserves to fund the scheme. Business for SA (B4SA) said on Tuesday that the notices based on the agreement have been signed by Employment & Labour Minister Thulas Nxesi and await imminent gazetting. The Covid-19 Temporary Employer/Employee Relief Scheme (Ters) is open to all employees who along with their employers are contributors to the UIF where the employer has closed operations and employees have lost their income as a result of the pandemic. The amount of the benefit is based on a sliding scale of between 38% and 60% of earnings. A floor and ceiling are in place, with the minimum monthly payment pegged at R3,500 in line with the minimum wage and the maximum at R6,730. Employers will be allowed to supplement the benefits, which will be available for up to three months. The employer is required to pay the benefit to employees within 48 hours of receiving the monies from the UIF.
- Read the full original of the report in the above regard by Carol Paton at BusinessLive (paywall access only)
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