/ 29 March 2005

UIF pays out R6,7m to domestics

Domestic employers, seasonal employers, farmers and their workers contributed R40,9-million to the Unemployment Insurance Fund (UIF) during the 2003/04 financial year, according to Labour Minister Membathisi Mdladlana.

This figure has already jumped to R68-million for the categories of employers and workers in the period from April 1, 2004 to January 31 2005 while benefits paid to domestic employees were just R6,7-million. Total benefits paid to domestic employees were only R3,64-million in 2003/04.

Seasonal and farm employees were included under the commercial category, which included a range of workforce sectors — in terms of payouts and total benefits that were R1,6-billion in 2003/04. This has risen to R2,1-billion in the period April 1 2004 to January 31 2005.

Mdladlana provided these figures in reply to a question in Parliament from the Democratic Alliance. He said the fund had R10,4-billion in assets as of January this year – up from R700-million in 1999.

From April 2003, employers of domestic and farm workers were required to contribute 1% of their employee’s basic wage and the employees themselves were also expected to contribute 1% of their wages towards the UIF.

Mdladlana noted that total income to the fund grew from R2,7-billion to just over R4-billion between 1999 and the financial year 2003/04.

In a written response to the Democratic Alliance, who asked what the total revenue and size of the UIF was, Mdladlana told Parliament — in a written reply published on Tuesday — that the fund had grown from total asset value of R716-million in 1999 to just over R7-billion by the end of the 2003/04 financial year.

Total income had risen from R2,7-billion rand in 1999 to just over R4-billion in 2003/04.

Total claims in 2003/04 for unemployment amounted to R1,5-billion while claims for illness amounted to R109-million. Maternity and adoption claims were R266-million and claims for dependents were R182-million.

Mdladlana compared these to the 1999 figures, which were R2,5-billion for unemployment, R108-million for illness, R223-million for maternity and adoption and R117 000 for dependents.

The global figure for 2003/04 claims was R2,09-million compared to R2,9-billion in 1999. — I-Net Bridge