South Africa: Guidance concerning unemployment insurance fund program (COVID-19)

South Africa: Guidance on unemployment insurance fund

The Minister of Employment and Labour in April 2020 issued two directives concerning an unemployment insurance fund (UIF) program that was established in response to the coronavirus (COVID-19) pandemic.


Related content

These two directives follow a March 2020 directive that established and implemented the UIF program. Under the UIF program, when an employer pays an employee a partial amount of wages or salary, the fund is to compensate the employee for the shortfall, at the applicable UIF rate, as long as the employee does not receive more than would have been received in a prior month.

Over 77,000 employers have filed applications for UIF relief.

Read an April 2020 report [PDF 1.2 MB] prepared by the KPMG member firm in South Africa

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.

Connect with us


Want to do business with KPMG?


loading image Request for proposal