UIF ready for higher unemployment claims, says Labour Minister Mildred Oliphant
The department expects unemployment to continue growing as it did in the first quarter of 2017, and expects a 4% increase in UIF claims
The Unemployment Insurance Fund (UIF) has assets valued at R110bn, Labour Minister Mildred Oliphant disclosed on Monday.In a written reply to a parliamentary question by DA labour spokesman Michael Bagraim, Oliphant said that while the projected monthly contributions from September 1 2017 to August 31 2018 were estimated at R1.58m, the monthly payment of claims was projected to be R801,126 over this period.These projections, the minister said, were based on the fund’s annual actuarial valuation report as at end-March 2017."Additional allowances for unemployment claims were made due to higher expected future unemployment rates," she said. Noting that the unemployment rate had increased by 1.2 percentage points, according to the quarterly labour force survey for the first quarter, to 27.7% from 26.5%, Oliphant said: "It is expected that this trend will persist for another four quarters", for a total increase of five percentage points. "As unemployment represents 80% of the total benef...
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.