Employment and Labour minister Thulas Nxesi says his department is looking to leverage the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF) as a means to preserve jobs and develop skills among the unemployed.
Nxesi tabled his budget vote Wednesday in Parliament, the department’s first budget vote since President Cyril Ramaphosa issued a directive that it would be reconfigured to put job creation at the core of its mandate.
The UIF buffers the impact of unemployment through contributions occupants make while they are gainfully employed, while the CF offers compensation to workers who lose a job or the ability to work due to occupational injuries and disease.
Nxesi did not go into detail on how the two funds would be used for the job preservation and skills development.
“Prophesies” that there would be wholesale retrenchments after the introduction of the national minimum wage this year did not come
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