SA considering establishing ‘national disaster benefit’

South Africa is considering establishing a ‘National Disaster Benefit’ fund that would pay workers compensation when they are laid-off because of the effect of the coronavirus outbreak on businesses.

The fund would pay out workers at a flat rate of R3 500 a month, which is the national minimum wage, according to a proposal seen by Bloomberg and confirmed by the Congress of South African Trade Unions, which is taking part in the talks. There will also be payouts for sickness claims and reduced time arrangements.

“From Monday R30 billion will be available from the Unemployment Insurance Fund to tackle the coronavirus” related job losses, supporting job retention, illness payouts and reduced time claims, said Matthew Parks, Cosatu’s parliamentary coordinator.

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