Employees who expect the FIU to be paid per payday – ABOUT MAG 2020

By Tshego Lepule Time of published article 8h ago

Share this article:

Cape Town – Many employers and employees expect the Unemployment Insurance Fund (FIU) to pay benefits related to Covid-19 salary cuts in time for payday.

To date, R $ 1.8 billion has been paid to employers to cover more than 790,000 workers since April 16, through the temporary employer / employee scheme.

However, that number represents half of the employees in need of relief after 55,268 requests were made to the fund by employers, covering more than 1.6 million workers.

However, Labor Minister Thulas Nxesi insisted, despite pressure on the system, that the fund has been working with as many orders as possible, eliminating defective orders.

The National Association of SA Employers has conducted a survey with its members who had requested payments for the scheme and indicated that, although slow, there were improvements in the system that initially had several challenges.

Gerhard Papenfus, of the association, said that the other challenge that employers face is the way in which the money is being paid.

“What is happening is that the employer receives the money without a spreadsheet with details to show who should receive what,” he explained.

“This means that companies and their human resources department will have to solve the problem, which is not a problem, but it creates a problem for those without an HR to work with little time sometimes, considering how many companies are still waiting and we are at the end of the month. “

UIF payments are calculated with a salary cap of R17700 and those who earn more than that receive 38% of the cap value, but if it is less than that, the payment must be calculated according to a scale used by the fund.

Papenfus said the long-term effects of the blockade may prompt more employers to demand FIUs once restrictions are lifted due to job losses.

“Employers will return to work in May, when some companies return and discover that they will not be able to continue operating due to (the) financial cost that this period has caused to businesses,” he added.

“The supply chain process has now been tainted and, while it was easy to shut down the economy, we will find that starting the process again will look like a slow diesel engine.

“While we have people sitting at home waiting to see if they are paid at the end of the month, this will be the case in the future with layoffs and cuts to come.”

While Nxesi said the fund has continued to process payments for common benefits such as pregnancy, cuts and other payments in the amount of R $ 804 million since the beginning of this month, many have complained about non-payment, despite having submitted their application before the blockade. .

Argus accommodation

Paula Fonseca