{"id":68916,"date":"2021-02-23T10:36:47","date_gmt":"2021-02-23T08:36:47","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=68916"},"modified":"2023-10-10T13:19:16","modified_gmt":"2023-10-10T11:19:16","slug":"budget2021-how-will-the-finance-minister-fund-the-uif-covid-19-ters-benefit","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/budget2021-how-will-the-finance-minister-fund-the-uif-covid-19-ters-benefit\/","title":{"rendered":"Budget2021: How will the Finance Minister fund the UIF COVID-19 TERS benefit?"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tCompliance<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tBudget2021: How will the Finance Minister fund the UIF COVID-19 TERS benefit?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Yolandi\t\t\t\tYolandi Esterhuizen<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

The Temporary Employee\/Employer Relief Scheme (TERS) provides financial relief to South African workers when their employers could not pay them or were required to take compulsory leave during different phases of the COVID-19 lockdown in South Africa. We hope the Finance Minister will address the TERS financial implications<\/a> in the upcoming Budget Speech.<\/p>\n\n\n\n

When the Minister of Employment and Labour first announced the TERS scheme, the budget was R40-billion. However, employees and employers have claimed close to R60-billion in payments since March last year, excluding valid outstanding TERS claims and TERS’ extension from 16 October 2020 to 15 March 2021.<\/p>\n\n\n\n

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The Unemployment Insurance Fund (UIF)<\/a> has also seen a sharp rise in claims for ‘reduced work time’ benefits because employers implement ‘reduced work time’ to accommodate COVID-19 safety measures in the workplace.<\/p>\n<\/blockquote>\n\n\n\n

What’s more, many South Africans lost their jobs permanently during the pandemic, resulting in increased volumes of normal UIF claims.<\/p>\n\n\n\n

These numbers will only increase due to the economic state caused by the pandemic and lockdown. This leaves us with the burning question of where the funds will come from. The question is whether the Minister of Finance will consider an increase in the UIF contribution limit by taking the following facts into account:<\/p>\n\n\n\n