- Aug 26, 2016
The fund has been selling assets to make Temporary Employer/Employee Relief Scheme payouts
In a reply to a Democratic Alliance question in Parliament, Nxesi warned that the fund would become “financially unsound” in the event of continuing heavy job losses.
Surging unemployment will have the dual effect of reducing the fund’s income and placing new demands on it for payouts. The minister set out four scenarios of the UIF’s growing financial weakness and reliance on external funding if joblessness rises beyond the 41% mark.