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TERS - Frequently asked questions

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Please Note:

The C19 TERS situation is in its early development stage.  The following questions and answers are based on the facts known at the drafting time and may change.  We will endeavour to amend the following, as required.


Q:        If the business has to close all operations for a period of time, do I qualify for TERS benefits?

A:        Yes provided the employer is closing for three months or lesser period; is closing because of COVID-19; has suffered financial distress. It is unknown whether this        period will be extended at this stage. (s3.1)


Q:        What must I do if I am not closing the business but have reduced working hours?

A:        Provided the employee is eligible for UIF, the loss of income may be claimed under normal UIF benefits as a reduction in working hours.


Q:        What if my employee self-quarantines for 14 days?

A:        Where an employee is in quarantine for 14 days due to Covid-19 pandemic, the employee shall qualify for illness benefit. Confirmation from both the employer        and the employee must be submitted together with the application as a proof that the employee was in an agreed pre-cautionary self-quarantine for 14 days.

 Should an employee be quarantined for more than 14 days, a medical certificate from a medical practitioner must be submitted together with continuation form        for payment.


Q:        What does the TERS benefits entail?

A:        Salary benefits will be capped to a maximum amount of R17 712 per employee and an employee will be paid in terms of the income replacement rate sliding        scale        (38%-60%) (s3.4).  Should an employee’s income, which is determined in terms of the income replacement sliding scale, fall below the minimum wage of the                sector concerned, the employee will be paid a replacement income equal to the minimum wage of the sector concerned (s3.4).


Q:        What are the sector minimum wages?

A:        Domestic Workers = R 15.57 per hour


Farmworkers = R 18.68 per hour
Public Works Program = R 11.42
Other workers = R 3500 per month
For employers governed by Bargaining Councils please refer to the Main/ Collective Agreement


Q:        For whom can we submit claims?

A:        All employees who are registered with UIF and for whom UIF is paid over to SARS / UIF monthly. The TERS benefit is de-linked from the UIF's normal benefits and

 the normal rule that for every 4 days worked, the employee accumulates a one-day credit and the maximum credit days payable is of 365 for every 4 years will        not apply. (s3.2)


Q:        Must I pay the employee before claiming TERS benefits?

A:        You submit the claims on behalf of the employees and disburse the payment to them.  You must do so within five days of receipt of the benefits and provide                proof of payment to the employees.


Q:        Can I claim under the TERS Rescue benefits if my workers are not yet registered for UIF?

A:        No


Q:        Why do I need a new Bank Account for the payment of the TERS benefits for my employees?

A:        This is no longer a requirement.  The TERS benefits will be paid into the company bank account and must be paid to the employees within five days of receipt.


Q:        Must the account be in the name of the Business?

A:        Yes


Q:        How do I get an account opened now during the Lock Down?

A:        It appears most banks have an online facility where extra accounts can be opened easily. Other banks only require that you contact your business banker to open        an account.


Q:        Must a Confirmation of Bank Account be submitted with the Application for TERS benefits?

A:        Yes.


Q:        How do I start the TERS benefits process.

A:        Send an email to co[email protected] – you should receive an automated reply.


Q:        What documents am I required to submit to meet TERS requirements?

A:        You will require the following in terms of section 5:


1. Letter of authority on an official company letterhead granting permission to an individual to claim on behalf of the employer.
2. A completed and signed Memorandum of Agreement (“MOA”) with the UIF.  A generic MOA is available at under the relevant documentation section.
3. A prescribed template with the employees critical information.
4. Three month’s payroll as proof of income for employees.
5. A copy of the company bank statement to confirm banking details.


TERS guide:


We have put a guide together including the necessary documentation to be completed for Employers and Employees for TERS.


Click here to view the guide.



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