UIF eats into surplus as it pays out R2.2bn more than it collects
Fund pays out more than it brings in as benefit payments exceed contributions
30 March 2022 - 14:38
UPDATED 30 March 2022 - 23:34
In a trend that may threaten the long-term future of the Unemployment Insurance Fund (UIF), which provides short-term financial support to workers who lose their jobs or cannot work, it is paying out more than it received in contributions.
While investment income ensured that the fund remained in surplus in the nine months to end-December, the trend — which has never been seen before — has raised enough concerns for its actuaries to compile a report on its long-term sustainability. The size of the surplus has dropped about a fifth in the past two years...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.