Relief in sight for workers losing their jobs

A3_BThe parliamentary Portfolio Committee on Labour has recommended amendments to the Unemployment Insurance Act (UIF). As this received support from all parties, it is almost certain to be promulgated into law in the next few months.

In view of the difficult economic conditions and high unemployment in South Africa, this is welcome news.

The major amendment is that unemployment benefits will be extended to 12 months from the current 8 months.

Other improved benefits include:

  • Increased maternity benefits
  • Benefits to learners and civil servants in learner ship programs
  • UIF benefits for people on short time.

This is sound legislation as the UIF is considerably over-funded which also means there is little likelihood of UIF contributions going up any time soon.

This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)

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