UIF business solid as the Fund deepens poverty alleviation – Commissioner Seruwe
The Unemployment Insurance (UIF) has paid R5,7 billion to its beneficiaries in the 2013/14 financial year to help alleviate the effects of poverty in South Africa, said UIF Commissioner Boas Serume.
Seruwe told the 4th Annual UIF Seminar in Pretoria today that the Fund was growing from strength to strength and has built an asset base valued at R102-billion.
“We do not think the Fund will in the foreseeable future will go and ask government for bail out,” he told guests that the Fund had over the past five successive years posted clean audits.
The UIF Seminar was organized to encourage employers to comply with the UI Act by emphasizing the need for them to register and declare contributions to the Fund every month.
The Seminar also encouraged employers to use the new and already active U-Filling system that was introduced to make life easier for employers when registering and declaring their employees.
According to Seruwe the number of registered employees had grown by 8,5% from 8,3 million in April 2013, and this has grown to 8,5 million by March 2014. While the number of employers registered with the Funds stands at 1,5 million.
Seruwe said there were still millions of employees working and not registered with the Fund and encouraged them to register.
He said the total number of people who accessed the UI’s range of benefits has increased in the financial year 2012/2013 from 731 131 to 762 654 in 2013/14. He also observed the rise in the number of women claiming for maternity benefits. This has increased from 72 000 in 2004/05 to 105 021 in 2013/2014.
According to Seruwe the Fund’s claims turnaround time was five weeks and the organisation always strives to improve. He said the target was to finalise 85% of claims within five weeks of receipt and for the year under review achieved 86%.
“To improve service delivery we have developed an online system where clients can declare at the comfort of their offices,” Seruwe said.
Turning to companies in distress, he said the UIF was contributing to the Training Lay Off Schemes to help companies in the process of retrenchment. The Commissioner expressed disappointment that the scheme was not being utilised by companies to the level of expectations.
He said in 2010 when the Training Lay Off Schemes started UIF budgeted for R248 million and only R21-million was utilised. He said in the 2014/15 financial year - there were encouraging signs that the scheme was beginning to be used. He said of the R150 million allocated R52 million has been paid to companies in distress.
Seruwe said the auto sector was a leading user of the Scheme, yet there were other companies in other sectors who were retrenching, and yet were not utilizing the Scheme.
Gauteng based companies account for a large number of organisations using the Scheme.
The UIF, a public entity of the Department of Labour - in the financial year 2013/14 had increased contributions revenue from R13,6-billion (2012/13) to R15,3-billion.
For more information contact:
Makhosonke Buthelezi
Director: Communication and Marketing
Unemployment Insurance Fund
Tel: 012 337- 1692
Cell:082 359 5584
