Department of Social Development Minister Bathabile Dlamini presented the much-anticipated consolidated document on Comprehensive Social Security Reform at Nedlac.
The reform proposals contained in the paper are key actions to accelerate progress towards 2030 National Development Plan.
Social Development Director General, Zane Dangor, says the plan aims to address:
free or cheap health care
income security for children through social assistance
income security for the disabled and elderly
- a mandatory social insurance fund.
The central reform proposal includes the introduction of a National Social Security Fund (NSSF), a centrally managed public fund to provide pensions, death and disability benefits and unemployment benefits.
All employers and employees will be obliged to contribute at a combined rate of 12% of qualifying earnings up to a ceiling that will be aligned with the UIF earnings threshold (presently R149 736 per year).
However, government will subsidise the contributions of low-income workers to minimise disruptions to the supply or demand of labour associated with the introduction of mandatory contributions.
It is proposed that employees earning below an agreed threshold (R13 000 per year) should not be obliged to contribute to the NSSF for retirement or risk benefits but will continue to contribute to the UIF.
Dangor says NSSF will ensure that the poor do not retire in poverty.
We have got a huge young population and those that can't access the world of work and learning and there is no social security support for them.— Zane Dangor, Social Development Director General
Listen to the interview with Social Development Director General, Zane Dangor, to hear more about the Comprehensive Social Security Reform...