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Minister of Social Development, Lindiwe Zulu / GCIS

Social Security Reform: South Africans urged to weigh in on green paper

Government’s proposed National Social Security Fund (NSSF) could see taxpayers pay close to R3 000 a month

latest news in South Africa

Minister of Social Development, Lindiwe Zulu / GCIS

Social Development Minister Lindiwe Zulu has published the Green Paper on Social Security and Retirement Reforms for comment.

The green paper is aimed at addressing all kinds of social ills, and would see employees and employers paying up to 12% of their salaries towards the National Social Security Fund (NSSF).

Now South Africans have been encouraged to give their input on the green paper, which has ruffled a few feathers.

“There are no provisions to address the plight of individuals who have no income but do not meet the means test criteria to receive social grants (the 18 – 59 age group challenge). The expectation that this group would derive their income primarily from selling their labour has proven to be ineffective in the context of persistent, long-term and structural unemployment,” the paper says.

According to the paper, about 6.2 million formal sector workers, primarily low-income earners, informal workers and informal sector workers would be excluded.

“Such an arrangement must be mandatory, should provide adequate but affordable benefits, and should pool risk across the workforce. It should be designed to interact with non-contributory social assistance as well as contributory arrangements, both statutory and voluntary,”

Social Security Reform green paper

Solidary outraged by Social Security Reform green paper

Solidarity has vowed to approach the courts in a bid to challenge the green paper. The trade union says South Africans are already overworked.

“Workers in South Africa are tired of seeing their hard-earned money being wasted by the state. At best, the state is just inefficient and clumsy, but more often funds like this and the NHI are simply an excuse for looting and corruption,” Solidarity’s CEO Dirk Hermann said.

Hermann said it is time for taxpayers to realise their power and stand up against a government that doesn’t do its work adequately.

“Apart from the new tax proposals, the tax rate is already high, and ordinary people have to incur expenses for which they are already taxed. On top of that, tax money is still looted at a large scale,” he said.

The green paper is accessible on the website of the Department of Social Development here.

Comments on the green paper can be sent to the following address, no later than 10 December 2021. If commenting via post, the address is: Department of Social Development, 134 Pretorius Street, HSRC Building, Pretoria; Private Bag X901, Pretoria 0001.

For attention: Mr John Tebeila, Acting Director: Retirement Reform

Those opting to email their comment can send to this email address