The UIF has paid out R3.3-billion in COVID-19 relief funding since the lockdown started.
The National Employers’ Association of South Africa (NAESA) says a large portion of funds paid out to employees by the Unemployment Insurance Fund (UIF) amid the national lockdown were incorrect amounts.
The UIF has paid out R3.3-billion in COVID-19 relief funding since March 27.
Government says it has received 103 000 applications from employers who represent 1.7 million employees.
NAESA Chief Executive Gerhard Papenfus says employers are experiencing problems when applying to the UIF system.
“It is extremely difficult for a small guy sitting somewhere in the rural area with a business applying for this system. It must be very frustrating. Businesses in the cities and accountants helping businesses are experiencing difficulties. Employers are battling. Less than 30% of those who did apply and receive their monies, 90% of them did not get the right amount. There is a problem with the system and it is not that employers are not applying, they are. Money in respect of one million employees has been paid out but there are 10 million workers in SA, that is a small amount,” says Papenfus.
Unregistered workers most financially hit
Workers who are not registered with the UIF are among the hardest-hit financially.
Small business owners are also taking a heavy knock as some of them are not able to work frequently and receive a steady flow of income, subsequently not being able to register with the fund.