Covid-19 UIF Frequently Asked Questions
- Who can apply for the Covid19 Relief Benefit?
- Any UIF contributing business unable to pay salaries as a result of the lock down period); and
- Any employee who is contributor (works more than 24 hours a month) and there is an employer and employee relationship.
- How do I apply?
Companies are encouraged to apply on behalf of their employees by:
- Visiting https://uifecc.labour.gov.za/covid19/
- Registering and follow application process
- Sending email to COVID19ters for a National Disaster Staff template should you needs to load a CSV file.
- An email will be sent to your mailbox to indicate successful transmission.
3. Should I have enquiries how do I make contact?
Please call 0800 030 007 for any enquiries. It should be noted that the call centre receives calls close to 80 000 per day, and it takes about 20 minutes for our agents to deal with a call.
- What is the deadline for the submission of applications?
- The benefit scheme is applicable to the lockdown period; therefore, the deadline is linked to the date the President will announce to lift up the lockdown.
- Do employers who are not registered with UIF qualify for the Relief Benefit?
- Companies who have registered with UIF just after the 15 March 2020 may not be eligible for the Benefit.
- Do informal businesses like Spaza shops, hair saloons etc. qualify?
- Yes, as long as they are registered with the UIF. Other Informal businesses not registered with UIF won’t qualify for this benefit, instead they must check with the Department of Small Business Development for support they offer at www.dsbd.gov.za
- As a domestic worker, can my employer apply for the Covid19 TERS Benefit?
- Yes, your employer can apply for the Covid 19 TERS Benefit provided you are registered with the UIF.
8. Do Commission earners and freelancers qualify for Covid19 TERS Benefit?
- In normal circumstances Commission earners and freelance employees are not contributors to the UIF, therefore they will be regarded as non-contributors and will thus not qualify for this benefit.
- How long does it take to process the application?
- IF application is complete and accurately captured the turnaround time is 2 working days.
- How much will I be paid?
COVID 19 TERS FORMULA
The minimum amount to be paid by UIF to clients is R 3 500.00.
The maximum amount to be paid by UIF to clients is R 6 638.40.
As per Schedule 2 of the Unemployment Insurance Act, No 32 of 2003 the benefit due is calculated as follows:
Daily income for weekly earners = Weekly rate *52 / 365
Daily income for monthly earners = Monthly rate * 12 / 365
Benefit = Daily Income * IRR
Where IRR is the Income Replacement Rate corresponding to the contributor’s daily income, which is defined as:
The Income Replacement Rate (IRR) determines the percentage of a contributor’s previous income to which the contributor is entitled in the form of benefits. The IRR is a variable, so it defines a sliding scale. A contributor who previously earned a low wage is entitled to receive benefits representing a larger proportion of her or his previous income than a contributor who previously earned a higher wage.
The IRR is at its maximum when income equals zero, and it reaches its minimum where income is equal to the benefit transition income level. The maximum IRR is fixed at 60%. The minimum IRR is currently set at 38%. However, the Minister may vary the minimum IRR in terms of section 12(3)(b).
Using current values, the IRR can be calculated according to the following formula:
IRR = 29.2 + (7173.92 / (232.92 + Yi))
Where Yi represents a contributor’s monthly rate of income. (Consistency of units is essential. To calculate IRR from daily or weekly rates of pay, please refer to the more detailed explanation of the IRR formula in the technical note below.)
Worked as a contributor with the remuneration being R 4 000 per month. This remuneration will also be used as the average remuneration (earned 4 000 for the last 6 months).
Step 1: Determine Daily Income (monthly remuneration X 12/365)
R 4 000 X 12 = 48 000/365
Daily Income: R 131.51
Formula: 29.2 + (7173.92 / (232.92 + DI)
29.2 + (7173.92 / (232.92 + 131.51)
29.2 + (7173.92/ 364.43)
29.2 + 19.69
Client would be paid on an IRR of 48.89% for the number of days: R 131. 51 x 48.89% = R 64. 29 (Daily Benefit Amount)
R 1 928.70
NB: In this scenario since the amount due to the client is below the minimum wage R 3500.00, the amount to be paid will be R 3 500.00.
Normal Remuneration is R 18 640.76 which is above ceiling and calculations will be discounted as if remuneration earned is R 17 712
Step 1: Determine Daily Income: 17 712 x 12/365 = R 582.31
Formula: 29.2 + (7173.92 / (232.92 + DI)
29.2 + (7173.92 / (232.92 + R 582.31)
29.2 + (7173.92/ 815.23)
29.2 + 8.80
Payment to be assessed in terms of sliding scale and in particular 38%
Client would be paid on an IRR of 38% for the number of days: R 582.31 x 38% = R 221.28 (Daily Benefit Amount)
R 6 638.40
NB: THE AMOUNT TO BE PAID TO THE CLIENT FOR SALARIES ABOVE R17 712 PER MONTH IS R6 638.40 PROVIDED THE EMPLOYEE RECEIVED ZERO (R0.00) SALARY DURING LOCKDOWN.
- From scenario 2 above;
Normal Remuneration is R 18 640.76; Determine Daily Income: 17 712 x 12/365 = R 582.31*38% = R 221.28
SALARY DURING LOCK DOWN: R10 000.00
R 6 638.40
THE AMOUNT TO BE PAID BY UIF TO THE CLIENT WILL BE R6 638.40.
SALARY DURING LOCKDOWN: R15 000.00
THE AMOUNT TO BE PAID BY UIF TO THE CLIENT WILL BE R3 640,76 (R18 640.76 – R15 000.00)
NB: THE BENEFIT AMOUNT (R6 638.40) WHICH UIF MUST PAY AS PER THE DIRECTIVE ADDED TOGETHER WHAT THE EMPLOYER PAID (R15 000.00) SHOULD NOT BE MORE THAN THE EMPLOYEE REMUNIRATION IF THERE WAS NO LOCKDOWN.
- Will non-declared employees receive benefits?
- All employees will be checked against our systems and if the employee is not registered with UIF, the application will be returned back requesting additional information from the employer.
- Will my credits be affected after I benefit from a COVID 19 claim?
- NO, the COVID19TERS benefit will not affect any credits because it’s a special benefit.
13. Should I be retrenched after receiving the COVID19 benefit, can I still qualify for other benefits?
- Yes, you will be able to claim for the Unemployment Benefits since it is de-linked to the other benefit structure.
- How will UIF manage the number of applications coming in during this period?
- The online platform makes the process smoother to deal with the administrative burden, applications received online if complete and accurate will take 2 days to fulfil.;
- How is the money going to be paid?
Payments will be made to:
- Bargaining Councils / Employer Associations
16. Are Labour Centres Open During Lock Down?
- No, labour centres are closed to prevent the spread the virus, however, applications can be made electronically and drop boxes are available at labour centre for client to put their applications.
- A Guide for electronic applications is available at Labour.gov.za
- What happens to beneficiaries who have been receiving benefits payment prior to the lock down?
- Beneficiaries who have been receiving benefits payment prior the lock down will continue receiving them and we took a decision to pay them without a requirement for submitting the Continuation of Payment Forms.
18. I already applied for the benefit manually, do I apply again?
- We suggest you apply again through the online portal due to 95% of the applications failing validation.
19. What if I have multiple companies?
We insist on 1 application per company as each company has their unique UI Reference number with their own employees declared.
20. How do I know if my application is successful?
- In your profile a screen will show if your application is successful or not, and reasons will be given if the application was unsuccessful.
21. We heard the system crashed, what was the reason?
- On the 29th of April we experienced a high volume of traffic to the site because of the functionality that enabled people to check companies who have been paid, plus many employers were tried to put in applications thinking that the deadline for applications was the 30th of April, and the whole rush put a strain to the system.
- We have since increased the capacity of the system and our technicians are creating a new ling to a list that will be in a PDF document so that workers can still see who has been paid.
- We heard complaints that not all employees that company applied for are paid, including foreign workers who are registered with the Fund, what is the reason?
- Yes, there are employers who have claimed for employees who are not declared on our system and this include foreign workers. So, SARS and Banks will be assisting us with proof that those undeclared employees have been contributing via SARS, and that they have bank accounts where their salaries are paid.