Plans to improve UIF benefits for workers

The benefit improvements will be proposed in amendments to the UIF Act which Labour Minister Mildred Oliphant will submit to cabinet shortly.

In her budget vote speech in the National Assembly this week‚ the minister said the unemployment benefits period would be extended from 8 months to 12 months; domestic workers would be included in maternity benefits; women on maternity leave would be paid at an income replacement rate from 38% to 66%; and workers would be given adequate time to claim unemployment insurance fund benefits up from six months to 18 months for death benefits and 12 months for other benefits.

Seruwe said in an interview that the benefit improvements would represent an increase of about 15% in the UIF's total annual disbursements of about R6bn.

He said SA compared favourably with other countries in terms of the unemployment benefit structure it provided but did not measure up in terms of additional support such as training and recruitment services.

It planned to get involved in training and already directs substantial amounts of its investments towards job creation through the Industrial Development Corporation and the Public Investment Corporation.

During the 2012/13 financial year‚ the UIF increased its revenue collection by 9.8% from R12.3bn to R13.5bn against the payment of benefits of R6bn to 500‚000 people.

The projected revenue to be collected this year was R13.9bn‚ Oliphant said in her speech.