Big increase in payouts to South African businesses

Big increase in payouts to South African businesses

The number of companies which have had their UIF Temporary Employer-Employee Scheme (TERS) applications processed has increased drastically compared to last week, said the UIF.

Labour Minister Thulas Nxesi said that over 59,000 applications have been successfully processed by the UIF.

Nxesi called on all employers to apply for COVID-19 benefits through TERS, stating the fund has paid out just over R3.3 billion to date.

He added that about 10,000 applications could not be processed due to errors, but said the affected companies have been informed of the problems with their applications.

“Some of the errors relate to incorrect banking details, making it impossible for payments to be processed.”

The minister also reiterated that the amount paid to businesses does not comprise the entire payroll amount, but rather 38% of each employee’s salary.

He said this was a relief measure, and the UIF decided on this amount to ensure it could provide this relief for up to three months.

Previous application issues

The UIF recently overhauled its TERS application portal after most of the applications submitted by businesses were unable to be processed.

The previous application process saw only 136 out of 39,000 applications successfully processed.

15,755 of these applications were duplicates, and of the remaining applications, only 16,534 were in the correct CSV file format. Of these, only 136 contained the correct information, said the UIF.

The UIF’s new online application portal aims to provide companies with a simpler method for completing TERS applications.

Most importantly – it allows companies to fill in their employees’ details on an online form, removing the need to submit a pipe-delimited CSV file as part of the application.

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