(Southern Africa) ( 4 minutes read)
South Africa’s Minister of Employment and Labour Thulas Nxesi said that the Unemployment Insurance Fund (UIF) was going to be under “very serious strain” due to massive unemployment and increasing number of companies looking forward to draw from the kitty
The South African Parliament is revising the already presented Budget in view of the Covid-19 to outline how a R500 billion in relief funds would be spent.
The Department of Employment and Labor has a budget allocation of R3.6 billion for the financial year
South Africa’s Minister of Employment and Labour Thulas Nxesi said that the Unemployment Insurance Fund (UIF) was going to be under “very serious strain” due to massive unemployment and an increasing number of companies looking forward to drawing from the kitty. However, he decried the predatory labor practices during and after the coronavirus
outbreak and cautioned companies not to resort to such things, when the nation is going through one of the most difficult trajectories.
Nxesi was giving a briefing on his department’s Budget vote and annual performance plan for the 2020-21 fiscal to Parliament’s Portfolio Committee on Employment and Labor through virtual medium. The South African Parliament is revising the already presented Budget in view of the Covid-19 to outline how a R500 billion in relief funds would be spent. The Department of Employment and Labor has a budget allocation of R3.6 billion for the financial year.
The minister warned that unemployment benefits were limited and funds were meant for long term use as a cover against employment insecurity. He said that the government has already paid R9 billion in Covid-1 benefits to employers and the bargaining council. Cover against employment insecurity could be done through ramping up public employment; that is labor-intensive industrial activities, which can be implemented at the earliest.
Speaking at the occasion, Director-General of Employment and Labor Thobile Lamati said the department had set an overall target of 25% reduction in irregular expenditure in the financial year from the baseline. This would mean a R3.4 million reduction in irregular expenditure and a R4.4 million reduction in wasteful expenditure.
