Trevor Hattingh

For most South Africans, the Unemployment Insurance Fund (UIF) is more than a line item on a payslip. It’s the difference between survival and despair when jobs are lost, when illness strikes, or when families grow.

The Fund’s newly tabled 2024/25 Annual Report tells a story of quiet but meaningful progress — one that deserves recognition, even as challenges remain.

In a year defined by slow economic recovery and stubbornly high unemployment, the UIF stood firm. It paid out R18 billion in benefits to 3.1 million beneficiaries, giving millions of workers and their families a measure of security. That’s not charity — it’s a constitutional promise in action, ensuring that social protection remains a lived right, not an abstract ideal.

The UIF’s financial position is solid. The Fund closed the year with a net surplus of R23 billion, up from R15.8 billion the year before — an impressive turnaround for any public entity. Revenue from employer and employee contributions rose to R26 billion, buoyed by the registration of over 43,000 new employers, signalling both improved compliance and confidence in the institution.

Yes, investment revenue dipped slightly to R11.4 billion, but the overall balance sheet tells a story of sound management and prudence. Actuaries have confirmed the UIF’s “going concern” status, which means it remains financially sustainable and capable of fulfilling its mandate for years to come.

The most striking feature of the 2024/25 report is the Fund’s evolving role in job creation and retention. Through its Labour Activation Programmes, the UIF trained over 28,000 learners, with 83% of participants coming from vulnerable groups — mostly women and youth. It also supported 862 SMMEs and cooperatives through its Business Turnaround and Recovery Programme, helping struggling enterprises get back on their feet.

In partnership with Productivity SA, the Fund committed R165 million over three years to help 226 companies in distress, a move projected to save 11,300 jobs.

And perhaps most impressively, UIF channelled R4 billion to the Presidential Youth Employment Initiative, which placed thousands of young South Africans as teaching and classroom assistants through the Basic Education Employment Initiative. This is the UIF at its most impactful — not just paying benefits but enabling work.

No credible institution hides from its shortcomings, and the UIF’s leadership has been forthright about its audit outcome. The Auditor-General issued a qualified opinion, citing concerns about record-keeping, investment valuations, and the verification of some benefit payments. These findings underscore the need for stronger internal controls and modernised systems.

But there is encouraging movement. A clean audit committee now meets monthly; an Audit Action Plan is being implemented; and interim financial statements will ensure that corrections and reconciliations happen continuously rather than retrospectively.

This is the kind of structural discipline that builds long-term integrity — not quick fixes for optics.

Despite facing capacity shortages and lingering ICT disruptions, UIF staff processed 93% of unemployment benefit claims within 15 working days, and 81% of invalid claims within 30 days. Manual interventions, overtime shifts, and creative workarounds kept the system moving when technology faltered. It’s not glamorous, but it’s evidence of grit — the kind that public service depends on.

The Fund’s overall performance achievement of 62% continues a steady climb from 33% in 2020/21, reflecting gradual institutional recovery and growing operational consistency.

The UIF is clearly in a phase of transition — from being primarily a benefits administrator to becoming a driver of inclusive employment. The introduction of new ICT systems, ongoing governance reforms, and partnerships with the private sector and development agencies all point toward a more modern, transparent, and responsive institution.

The challenges — from governance to capacity to technology — are not unique to the UIF. What matters is the response, and here the Fund is showing determination rather than denial.

Critics are right to expect more from the UIF. But they should also acknowledge that few institutions touch as many lives as directly or operate with as clear a social purpose. In 2024/25, the UIF did more than meet its legal obligations — it helped keep families afloat, sustained small businesses, and invested in the country’s future workforce.

In an economy where work itself has become precarious, that matters.

The UIF’s 2024/25 Annual Report doesn’t claim perfection. Instead, it offers something more valuable: proof that the Fund is learning, adapting, and — quietly but surely — becoming a cornerstone of South Africa’s social and economic resilience.

***Trevor Hattingh is Head of Communication and Marketing at the Unemployment Insurance.

** The views expressed here do not necessarily represent those of IOL News or Independent Media

IOL Opinion

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