Existing pension and provident funds could lose significant business if the government goes ahead with proposals to introduce a compulsory social security system that would provide some level of retirement, death and disability benefits for all. The proposals, which date back to 2012, were tabled at the National Economic Development and Labour Council (Nedlac) on Friday in their original, unrevised form, in line with a Cabinet decision earlier this year, even though the social development department had drafted an updated version last year which was never released. The proposals in the discussion document tabled at Nedlac by Social Development Minister Bathabile Dlamini would see the creation of a National Social Security Fund (NSSF) which would provide universal retirement or life insurance cover. This would be of particular benefit to low-income formal-sector workers who do not have such cover. Employers and workers would be required to contribute a combined 12% of qualifying inco...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.