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
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