Government to use UIF to ease coronavirus burden
Distressed companies to receive a period of reprieve from contributions to help avoid lay-offs
As the threat of a deep recession hangs over the SA economy, the government has offered its first measure of relief in response to the looming Covid-19 crisis, saying it will use the Unemployment Insurance Fund (UIF) to ease the burden on employees and employers.
This has been made possible by the UIF’s expected surplus of about R3.6bn over the next three years. It also has investments of around R180bn, which after liabilities amount to R160bn.