South Africa: Workers Would Benefit From Gov't Fund

South Africa’s Employment and Labour Minister Thembelani Nxesi announced on May 26 that all workers are eligible for the government Unemployment Insurance Fund (UIF). The norm intends to cope with COVID economic impact on the labor sector.

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“The COVID19 crisis has highlighted several gaps in our social provision. Concerning the UIF, there are important groups that are not covered – the informal sector, non-standard, and freelance workers. These issues have been raised by the ILO (International Labor Organisation) about the Future of Work – where a growing number of persons do not fit into the traditional employer-employee relationship,” Nxesi stated in official communication.

UFI regulates employer liabilities and employee’ guarantees during the lockdown.​​​​​​​. Furthermore, the fund plan includes a health procedure protocol for small commerce clients.

Labor Minister reformed UFI statutes after the Casual Workers' Advice Office, Women on Farms Project, and Izwi Domestic Workers Alliance advocated for informal workers’ inclusion. The organizations consider these as a victory on behalf of domestic workers and farmers who were excluded from the Covid-19 Temporary Employer Relief Scheme (TERS), a UFI application clause.

"Domestic and farmworkers have been among the worst affected groups of workers due to the precarious nature of employment in these sectors and the high levels of non-compliance from employers. Many industrial workers have suffered a similar fate," organization representatives stated. TERS would provide workers a monthly aid of $386, exceeding a basic income of $200. 

Thus far, South African has reported 24,264 COVID positive cases, 524 deaths, and 12,741 recoveries.