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COVID-19 Compensation Claims Under the Spotlight

June 10, 2020

Department of Employment and Labour

The Unemployment Insurance Fund (UIF) has paid over R20-billion since April, benefitting 3 517 346 workers.

The employment and labour department confirmed this in a statement on COVID-19 compensation claims.

The department added that May claims currently stand at just over R2-billion (R2 051 992 742.02).

“The figures also reflect an increase in direct payment to workers which now stands at 133 988 being paid directly an amount of R594-million. These workers’ claims were submitted by 9 747 employers. On the other hand, disbursements to domestic workers have increased to just under R100-million which has been paid out to 25 074 workers represented by 15 014 workers.”

The UIF Commissioner, Teboho Maruping, however, raised concerns about the high number of undeclared workers on whose behalf employers are putting in claims.

“In the latest round of claims employers have claimed for at least 76 599 workers who do not appear on the database for benefit payment of R325-million.”

The UIF called on employers to assist it in reconciling the claims for workers against its database.

As regards the Compensation Fund, the department indicated that 212 COVID-19 related claims have been submitted with the largest number coming from KwaZulu-Natal with 76 claims and the Western Cape with 75 claims.

According to CF Commissioner, Vuyo Mafata, most of those affected are “nurses in the private sector with 65 affected in KZN, 26 in Western Cape and 18 in Gauteng. In the Eastern Cape 12 nurses that have been affected are in the public sector”.

The department also drew attention to the low level of compliance with health and safety protocols during the lockdown.

“Over this period, there have been 4 306 inspections conducted with 2374 workplaces complying. This works out to 55% which means a whopping 45% of employers aren’t complying.”