If SA's economy continues to suffer, workers who lose their jobs could in future have less to fall back on as the Unemployment Insurance Fund's (UIF) kitty gets depleted.
UIF commissioner Teboho Maruping said this on Wednesday, adding that Covid-19 Ters payouts had undoubtedly dented the fund's coffers in the past two years.
Since early 2020 the relief scheme, intended to replenish the incomes of employees who lost their jobs due to the pandemic, has paid out about R61bn.
At a media briefing on Wednesday to unpack the priorities of the fund during the 2021/2022 financial year, Maruping said the UIF had recovered millions fraudulently or mistakenly paid to recipients.
Maruping said the UIF coffers had dipped from R160bn before Covid-19 to about R120bn now. Asked if he was not concerned about the effect of the sluggish economy on the fund, he said: “I’m concerned. If the economy continues not to pick up in terms of creating jobs, creating entrepreneurs and companies surviving, it is going to affect the UIF kitty.
“Sooner or later the UIF will run out of funds. It is a concern on which we and the executives engage.”