The Department of Labour has launched an Electronic Fund Transfer project to help unemployed people access their money directly from their bank accounts.
The project will benefit close to 500 000 people who are currently registered with the Unemployment Insurance Fund (UIF).
The UIF has formed a partnership with First National Bank, which has created special 'Mzansi` accounts for this purpose and will not charge account holders transaction fees to withdraw their money.
"Most beneficiaries don`t have bank accounts, therefore we will open a Mzansi account for them. They don`t have to bank with FNB - they can use any of SA`s major banks but have to open a Mzansi account. The banks won`t charge them if they make one withdrawal per month," says Page Boikanyo, Department of Labour spokesperson.
The pilot project was officially launched in Alberton earlier this year and in Johannesburg last month.
Labour Minister Membathisi Mdladlana says the project is an important milestone in the history of the UIF, which continues to look at innovative ways to serve its clients better.
"By depositing money directly into beneficiaries` accounts, we are ensuring that our clients, who are the main reason for our existence, receive their unemployment payments securely, conveniently and without hassle", says Madladlana.
Boikanyo says the Department`s plan is to register every UIFR beneficiary in South Africa on the new system by the end of May.
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