The COVID19 SMME Relief Fund is available to those businesses that:
- Have been negatively affected due to the Corona Virus pandemic and are part of the essential services and products sector;
- Are 100% owned by South African citizens;
- Employ 70% of its staff of South African origin;
- Are UIF compliant and have a an UIF reference number; and
- Have an income tax number.
- Priority is given to businesses owned by women, youths, and people with disabilities.
The Department of Tourism has also made an additional R200 million available to assist SMMEs in the tourism and hospitality sector, who are under particular stress due to the new travel restrictions.
An easy-aid UIF benefits guide:
- The new “National Disaster Benefit” and any other normal UIF benefit is only applicable to employers who are registered with the UIF and make monthly contributions, as required by the Contributions Act of 2002.
- The employer may decide, as a direct result of the current Corona Virus pandemic, to close their business for a period and send employees home. This constitutes a temporary lay-off. If the employer cannot pay his employees for this period, the employer can apply for the “National Disaster Benefit” from the UIF.
- This benefit is de-linked from the UIF’s normal benefit structure, and therefore the normal rule that for every 4 days worked the employee accumulated 1 credit day and maximum credit days payable is 365 for every 4 completed years, will not apply.
- The benefit will be at a flat rate equal to the minimum wage (R3,500) per employee for the duration of the shutdown or a maximum period of three months, whichever period is the shortest.
- If an employee is ill, temporarily laid off, or unemployed for longer than 3 months, the normal UIF benefits, as explained below, apply.
Types of benefits provided by the UIF:
- Unemployment benefits;
- Dependents/Death benefits;
- Maternity benefits;
- Adoption benefits; and
- Illness benefits.
Contact us for assistance with processing your COVID19 SMME Relief Fund application at the cost of R1, 250 per business.