22 June 2006
The Unemployment Insurance Fund (UIF) preliminary revenue results for the
2005/06 financial year shows that the fund has collected close to R7 billion
mainly from contributions by employers.
Commenting on the revenue outcome of the fund in the previous financial
year, Labour Minister Membathisi Mdladlana said this surpasses all previous
performances by the UIF as the fund continued to perform beyond
expectations.
The collection of revenue and the distribution of funds are the core
business of the UIF.
âThe UIF collected R6,921 billion in the 2005/06 financial year compared to
R6,152 billion in the 2004/05 financial year. This represents and increase by
12percent, exceeding the fundâs initial target of improving by at least 10
percent on revenue collection in 2005/06,â said the Minister.
Minister Mdladlana continued by thanking all those employers who were
complying with the law and encouraged those who were still not registered or
behind with their payments to immediately get in touch with the UIF.
âThe UIF offers temporary relieve to workers during the period of
unemployment and it is therefore important that employers not only register
their workers with the fund, but also ensure that they are up to date with
their contributions as required by law,â he said
Minister Mdladlana added that the financial reserves of the fund were now
standing at R14,7 billion.
âThe fund has also improved its benefit payments with 589 000 unemployed
workers benefiting from R2,9 billion. This was achieved despite the fact that
the fund also recorded a surplus of R3,9 billion,â said the Minister.
The Minister said this was a further vindication that the fund was not
accumulating surplus at the expense of workers by reducing payments.
The UIF moved from a disclaimer in the 2003/04 financial year to only two
audit qualifications in the 2004/05 financial year. Minister Mdladlana remained
confident that the there would be a further improvement in the 2005/06 audit
opinion.
The Minister concluded by announcing that his Department had made tremendous
progress in turning the UIF into a government agency with delegated powers. He
said the fund was about to complete the process of ring fencing its financial
and human resource assets.
Enquiries:
Kgomotso Sebetso
Cell: 073 2699 870
Mokgadi Pela
Cell: 082 808 2168
Issued by: Department of Labour
22 June 2006
