The Unemployment Insurance Fund (UIF) is on the verge of expanding the period of benefit payment from eight months to 12 months, part of a drive to alleviate the scourge of poverty.
Addressing the Portfolio Committee on Labour last evening (10 October) UIF Commissioner Boas Seruwe said the matter of extending the benefits period was still under discussion at the National Economic Development and Labour Council (Nedlac), and it is something “that will happen”.
Presenting the UIF’s Annual Report for 2012/13 Seruwe said the Fund had paid a total of R6 billion compared to R5.6 billion in 2012 - a 7,1% increase in claims. In the same period a total of 731 131 beneficiaries, an increase of 25 276 compared to last year's 705 855 total beneficiaries, were also paid.
The UIF is a public entity of the Department of Labour (DoL) that exist to contribute to the alleviation of poverty in South Africa by providing effective short-term unemployment insurance to all workers who qualify for unemployment and related benefits.
The UIF had 1 465 218 employers (commercial, domestic and taxi) registered on the system at the end of March 2013 compared to 1 408 205 in March 2012. In the same vein the Fund had 8 330 760 employees (commercial and domestic) registered on the system in March 2013 as compared to 8 125 575 in March 2012.
The UIF currently has total assets valued at R81 billion compared with R65 billion in 2012, while the net surplus in the period under review was R16 billion compared with R11 billion in 2012.
In a drive to ensure compliance with the law, the UIF has grown the active U-filling employers to 42 487 as at 31 March 2013 compared to 35 868 active U-filling employers as at 31 March 2012. This reflects an increase of 18,45%.
The UIF established a partnership with the Industrial Development Corporation (IDC) in 2010 in response to job losses that were taking place in the country. The Fund initially bought placed a R2-billion from the IDC. The IDC in turn uses these proceeds to fund businesses that will create and save jobs.
During the 2012/13 financial year, the UIF and IDC continued their collaboration through the issuance of an additional bond of R2 billion. This has increased the total bond to R4 billion.
Since inception the UIF/IDC partnership there have been 199 approved deals with a total value of R3,3 billion.
To date 21 234 new jobs have been created and 20 161 job saved by companies that accessed the funding from the UIF/IDC initiative.
In another initiative the UIF partners with Productivity South Africa, in which it funds the organisation’s turnaround solutions to enable assistance to companies that are in distress with the objective to save jobs and keep people in employment. In terms of the funding agreement the UIF allocated R39 million for 2012/2013, and R55-million is earmarked for the 2013/14 financial year.
In the 2013/14 financial year, 130 companies are targeted for intervention with the potential to save 10 200 jobs through Turnaround Solution intervention.
Through the funding for Training Lay-Off scheme the UIF has budgeted R105-million for the 2013/14 financial year and a further R400-million over the next three years. In a push to sustain proper financial controls and corporate governance the UIF announced it has posted yet another clean audit in the period under review.
Going forward Seruwe said the Fund would continue consolidating on its developmental programmes such as funding training initiatives for the unemployed.
“We also believe job creation - especially in areas of beneficiation will receive attention. We are also targeting sectors such as textile and agro-processing as part of a drive to revive industrialisation, whilst not forgetting tourism with its inherent potential,” Seruwe said.
Contact:
Page Boikanyo
Departmental Spokesman
Cell: 082 809 3195
