Attorney and mediator, Ugeeta Pala, discusses various options that employees have when their salary is reduced.
As we all are going through these unprecedented times, it’s important to remain positive and still be grateful for the small mercies life offers us.
I was invited to attend a webinar with Graca Machel and Melinda Gates last week and felt deeply inspired by the empowering words that came out of the webinar, which I quote:
“In these unprecedented times, take unprecedented action to yield unprecedented success. We are in a time where we need to focus on all things positive and just remember that we are not in this alone.”
What avenues are available to you for an income?
As we have been advised the Temporary Employer/Employee Relief Scheme (TERS) was closed as this was only available during the hard lockdown but due diligence and consultation with the UIF actuaries and in line with the President’s decision to extend the life of the Disaster Management Act until 15 August 2020, the decision to similarly extend the Covid-19 TERS benefit until 15 August 2020 will be granted.
Employees will only be eligible to apply for the Unemployment Insurance Fund (UIF) should their employment contracts be terminated or if companies close down.
Those employees who get salary cuts beyond the TERS period can apply for the Reduced Work Time Benefit. This benefit is for employees who get pay cuts due to reduced hours or employees who are temporarily laid off without pay. The benefit payable is the difference between what the employer pays and normal UIF benefits payable should an employee lose employment. Employees applying for this benefit must have a letter from an employer confirming the reduced work time and also submit the UI19 and UI2.7 forms, which must be completed by the employer. A UI2.8 form must be completed by the employee’s bank and the UI2.1 form must be completed by the employee.
What else can I do to minimize expenses?
Banks, insurance companies and credit providers are offering holiday payments which allows you to relax payments or pay less with a longer repayment plan. It’s good to know this if you can’t make a payment as a missed payment will affect your credit score.
Prepare and plan ahead.
We all are swimming on the same rough seas but we are on different boats. The ones who prepare better will manage this storm.
Covid-19 has taught all of us that tough times won’t last but tough people will…
By Ugeeta Pala, Attorney and Mediator at Ugeeta Pala & Associates, 036 633 1051, ugeeta@pala.co.za.