Massive UIF Injection Safeguards 6,000 SAPO Positions Amid Financial Struggles
The South African Post Office (SAPO), grappling with financial instability, has received a significant boost from the Unemployment Insurance Fund (UIF) in the form of a R381 million cash injection. This vital support, implemented through the Temporary Employer and Employee Relief Scheme (TERS), aims to sustain nearly 6,000 jobs over the next six months.
A Lifeline for SAPO
On Sunday, May 18, 2025, Minister of Employment and Labour Nomahosazanames announced the signing of a pivotal contract between SAPO and the UIF. The agreement, intended to aid one of the country’s critical state-owned enterprises, is part of a strategic partnership aimed at stabilising the institution and securing jobs for thousands of employees.
Minister Nomahosazanames described the intervention as a necessary move to “support the revitalisation of one of the most important state-owned enterprises in the country, maintaining almost 6,000 jobs.”
How the TERS Funding Works
The R381 million will be injected into SAPO over a six-month period, providing immediate financial relief to 5,956 employees. This funding comes as part of the TERS programme, which Minister Mess described as more than just a financial mechanism but a strategic tool to stabilise jobs and support economic recovery.
The funds will be distributed in monthly tranches through a dedicated TERS bank account, under stringent governance, audit, and compliance measures. SAPO will be required to submit regular reports, maintain clear accounting records, and implement comprehensive turnaround strategies as conditions for receiving the funding.
Strategic Partnership and Accountability
Minister Mess emphasised that the agreement represents a bold step towards protecting workers and strengthening public confidence in SAPO. By establishing a strategic partnership with the UIF, SAPO is expected to not only secure its workforce but also demonstrate accountability and transparency.
This decision follows a rigorous arbitration process conducted by the TERS Single Arbitration Committee (TERS SAC), which includes representatives from the CCMA, the Ministry of Higher Education, the Ministry of Small and Medium Enterprise Development, and other stakeholders.
A Path to Recovery
The TERS boost is seen as a lifeline for SAPO as it navigates its financial challenges. The government remains committed to collaborating with social partners to foster inclusive economic growth while ensuring the dignity and security of workers across South Africa.
The intervention reflects a broader government strategy to preserve essential services and stimulate job retention within the public sector.
With this substantial financial support, SAPO is poised to strengthen its operations while safeguarding the livelihoods of its employees. As the turnaround strategy unfolds, stakeholders are hopeful that this intervention will mark a positive shift in the sustainability of the South African Post Office.
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