Staff Reporter
People receiving the special COVID-19 grants are set to benefit for a further three months after the government extended the relief scheme in order to support those who have lost their jobs and are struggling to make ends meet.
The Temporary Employer/Employee Relief Scheme (TERS) meant to assist businesses and staff has also been extended by a month until March 15.
President Cyril Ramaphosa said in his State of the Nation Address businesses in several sectors are still struggling and many families continue to suffer as the job market tries to slowly recover from the effects of the COVID-19 pandemic.
“We have therefore decided to extend the period for the Special COVID-19 Grant of R350 by a further three months,” said Ramaphosa.
He said the scheme has proven to be an effective and efficient short-term measure to reduce the immediate impact on the livelihoods of poor South Africans.
“We have also decided to extend the COVID-19 TERS benefit until 15 March 2021 only for those sectors that have not been able to operate,” he added.
Over the past year, South Africa has experienced a sharp decline in growth and a significant increase in unemployment.
In the third quarter of 2020, the economy shrank by six percent compared to the last quarter of 2019.
There were 1.7 million fewer people employed in the third quarter of 2020 than there were in the first quarter, before the pandemic struck.
“Our unemployment rate now stands at a staggering 30.8 percent . . . Poverty is on the rise. Inequality is deepening,” said the president.
He said as a result of the relief measures implemented and the phased reopening of the economy, a strong recovery in employment is expected by the end of 2021.
Ramaphosa said the social and economic relief package introduced in April last year is the largest intervention of its kind in the country’s history.
About R500 billion – or about 10 percent of the country’s gross domestic product – was set aside to provide cash directly to the poorest households, to provide wage support to workers and to provide various forms of relief to struggling businesses.
A total of 18 million people, or close to one-third of the population, received additional grant payments through these relief measures.
It is estimated that this grant lifted more than five million people above the food poverty line, helping to alleviate hunger in a moment of great crisis.
To date, more than R57 billion in wage support has been paid to over 4.5 million workers through the Special Unemployment Insurance Fund TERS scheme.
More than R1.3 billion has been provided in support mainly for small and medium-sized businesses.
In addition, over R70 billion in tax relief was extended to businesses in distress.
Around R18.9 billion in loans have been approved for 13 000 businesses through the loan guarantee scheme.