How Do TERS Benefits Work?

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The Covid-19 pandemic and the lockdowns it brought, has had a lasting impact on the South African economy. 


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The Covid-19 pandemic and the lockdowns it brought about, have had a lasting impact on the South African economy. 

As companies battled through lockdowns where revenues shrunk and profits decreased, many employees were retrenched. The lockdowns also impacted people’s ability to go out and work. If your business was not considered an essential service that meant you could no longer work or operate. 

The Unemployment Insurance Fund (UIF) introduced the Temporary Employer/Employee Relief Scheme to provide financial relief to people who were unable to work or had to work shorter days resulting in less income.  If you are determined to be eligible for the TERS relief, you will receive at least R3500 per month.

The TERS relief is unlinked from the UIF’s credit system. This means that it does not matter how long you were working prior to the lockdown or how long you were contributing to the fund. It will also have no impact on your future credits. 

You may not benefit from TERS relief if you are currently receiving alternative relief from the UIF. This included sick leave, adoption leave and maternity leave. 

You must meet the following requirements to qualify for TERS benefits 

  1. Not been able to work at all due the lockdown 
  2. Asked to work short time or reduced hours 
  3. Suffered a reduction of salaries due to the lockdown

The amount of TERS funds you receive will be determined by the UIF. This is due to some industries being more affected than others when it comes to the lockdown and their ability to operate. 

The UIF has a dedicated phone line that employers can call should they need assistance with TERS applications. The contact number is 021 337 1997. 

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