A directive (C19 TERS, 25 March 2020) addresses certain implications of the 21-day “lockdown” related to the coronavirus (COVID-19) pandemic on unemployment insurance fund (UIF) contributors.
UIF contributions are required of both employers and employees. The employee pays a UIF contribution of 1% of remuneration limited to a monthly remuneration cap, and the employer makes a matching contribution.
The directive provides a special benefit under the UIF rules for employees who have been compelled to take leave during the lockdown, and have lost all (or part of) their income as a result. There is also temporary relief provided for employers that because of the lockdown, have insufficient funds to pay their employees.
Read a March 2020 report [PDF 365 KB] prepared by the KPMG member firm in South Africa
Read also an April 2020 report [PDF 130 KB] prepared by the KPMG member firm in South Africa that reflects revisions to the unemployment insurance fund relief
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.