Workfare Programme: 60% of Applicants Face Payment Delays

The Ministry of Labour and Industrial Relations, led by Reza Uteem, is working to make the Workfare Programme more efficient in processing claims for Transitional Unemployment Benefits (TUB). This initiative aims to speed up payments for laid-off workers seeking assistance.

In response to a parliamentary question from Nitish Beejan, Minister Uteem explained that a technical committee has been formed, including representatives from the Ministries of Finance and Social Security.

The committee has met eight times, consulting Business Mauritius, unions, and other stakeholders. It is now finalizing recommendations to improve the system.

According to the Workers Rights Act, an employee who loses their job after working for at least one month up to twelve months is entitled to TUB. The benefit is capped at Rs 25,475 and is paid in three stages:

• First three months: 90% of the basic salary
• Months five and six: 60% of the basic salary
• Months seven to twelve: 30% of the basic salary

From 2020 to 2024, the number of TUB applications received and approved are as follows:

• 2020: 16,170 received, 13,326 approved
• 2021: 11,264 received, 8,930 approved
• 2022: 8,145 received, 5,578 approved
• 2023: 7,264 received, 4,880 approved
• 2024: 8,543 received, 4,992 approved

Legally, once a worker submits a TUB claim and the Supervising Officer at the Ministry of Labour confirms the validity, the ministry must inform the Ministry of Social Security within seven days to initiate payment.

The Social Security Ministry then has ten days to process and pay the benefit after receiving notification.

Registration in the Workfare Programme

However, data shows that the average processing time from registration in the Workfare Programme to the Social Security Ministry being notified has been much longer—78 days in 2020, decreasing to 59 days in 2021, 58 days in 2022, then rising again to 70 days in 2023, and 61 days in 2024. The legal processing time is only seven days.

Minister Uteem explained that delays are mainly caused by difficulties in securing information from uncooperative employers, delays in workers submitting necessary documents, and staffing shortages.

He added that before approving a transfer, the Supervising Officer must verify the claim’s legitimacy through consultations with both worker and employer, which takes time.

Furthermore, once the Social Security Ministry receives the notification, it takes an additional two weeks to disburse the benefits.

Overall, the process can take up to ten times longer than the legal seven-day window, leaving workers without payments for extended periods.

The minister expressed concern that these delays undermine the law’s goal of providing immediate aid to unemployed workers.

Source: Le Mauricien