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.

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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

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