Friday | 03 April | 2020
What is the TERS that the President spoke about and how do I lodge a claim for this? My financial situation is getting desperate.
The President recently announced that a C19-TERS benefit (Covid-19 Temporary Employer / Employee Relief Scheme) will be used to provide relief during the Covid-19 pandemic. The Government Gazette of 26 March 2020 brought more clarity in this regard.
During the lockdown period, employers may not be able to pay employees their compensation package in all circumstances, and in such cases the C19-TERS benefit will come into effect. The purpose of the fund is to limit the economic impact of the pandemic and the associated decline in activity, and it is also to prevent people from being forced to act in a way that will spread the virus further.
However, employees may not apply for the benefit directly, and the application will have to be brought by employers, after which the fund will pay the employees directly.
Only employers whose application complies with the formalities and who can prove that the suspension of their operations is directly linked to the Covid-19 pandemic, who suspend their activities for less than three months, and who are registered with the Unemployment Insurance Fund (UIF), will be eligible for the benefit. The maximum amount payable will be R17 712,00 per month and the normal sliding scale for remuneration will apply.
If an employee’s salary is below the minimum wage for a particular industry, the minimum wage for that industry will be paid to him/her.
Therefore, employees will need to contact their employer and make the employer aware of the benefit in order to ensure that their damage is limited. Employers must submit their application to email@example.com for the necessary forms to complete.
* All information was correct at the time of publication.