Minister Nomakhosazana Meth delivers 2025/26 Budget Vote for Employment and Labour

Employment and Labour Minister Nomakhosazana Meth delivered her 2025/26 Budget Vote in which she spelled out initiatives to alleviate unemployment, policy interventions, deliver social protection and strengthen the institutional capacity.

Delivering her plan Meth said: “unemployment continues to grip our country. We meet amid the daily struggles of millions of South Africans, who rise each morning with hope, but without work. We confront the hard truth of unemployment and inequality, a generational challenge that threatens our democracy, economic stability, and social cohesion".

The Minister was today (3 July) delivering her Budget Vote in Parliament, Cape Town.

Meth said the Budget is aligned with the national priorities outlined in the Medium-Term Development Plan (MTDP) 2024–2029 under the Government of National Unity (GNU), particularly: driving inclusive economic growth and job creation, reducing poverty and addressing the high cost of living, and building a capable, ethical, and developmental state that delivers quality public services.

She cautioned of immediate risks on uncertainty surrounding South Africa's continued participation in the African Growth and Opportunity Act (AGOA), a policy and commercial engagement that allows for eligible products from sub-Saharan African countries with duty free access to the US market.

She said amidst all these labour laws remain a central defence, ensuring decent work conditions, protecting vulnerable workers, and supporting business continuity amid uncertainty.

In advancing the Five-Year Strategic Plan and the 2025/26 Annual Performance Plan, Meth said the Department has set a target of facilitating 2 million jobs by 2030 through an integrated employment agenda.

Reflecting on policy, she said during the 2024/25 financial year, the Department promulgated three regulations (explosives, physical agents and noise exposure) to promote Occupational Health and Safety legislation, she said. The National Minimum Wage (NMW) has raised income levels for many low-wage workers, including domestic workers, farmworkers, women, and youth, Meth said.

The Minister elaborated that the Department is advancing the National Labour Migration Policy and the Employment Services Amendment Bill. These instruments she said have been finalised and approved by Cabinet in May 2025.

“This provides a legal framework to regulate the employment of foreign nationals and addresses misuse by labour brokers and the exploitation of undocumented workers," Meth said.

Minister Meth was worried about the continued slowness in transformation and structural inequality in the workplace which she said remains evident in employment equity data.

According to the Minister the recently published 24th Commission for Employment Equity Annual Report indicates:

• 62% of top management positions are occupied by white South Africans.

• Women hold 26.9% of top management and 37.7% of senior management positions.

• Persons with disabilities only make up 1.2% of the workforce.

Meth told members of Parliament that for the 2025/26 financial year, the Department of Employment and Labour has been allocated R4.153 billion, which will be distributed as follows:

• R1.598 billion for Compensation of Employees - enabling core service delivery by funding inspectors, career counsellors, client services staff, and provincial managers.

• R694.789 million for Goods and Services - covering critical operations, ICT tools, and stakeholder engagements that drive daily functionality.

• R1.738 billion for Transfers and Subsidies - supporting key partnerships with the CCMA, Productivity SA, Nedlac, and civil society actors involved in employment activation.

• R121.033 million for Capital Assets - financing digital infrastructure upgrades and modernisation of labour centres and satellite offices.

Minister Meth said major social protection interventions will be delivered through the Unemployment Insurance Fund (UIF) and Compensation Fund (CF).

In 2025/26, the UIF will manage R38.4 billion, with R19.02 billion for direct benefits. Over R10.98 billion is allocated to Labour Activation Programmes (LAPs), targeting 240,000 placements this year and 690,000 over the medium term, half of which are reserved for youth, women, and persons with disabilities. An additional R1.4 billion is allocated to the TERS scheme to protect jobs in distressed companies, while R55 million will fund the Business Turnaround Programme to assist 80 companies and save 3,750 jobs.

To boost efficiency, R1.13 billion is committed to digital transformation, including biometric verification and integrated claims systems. Seventeen mobile buses will be procured to extend UIF access to less serviced areas.

The Compensation Fund is allocated R1.6 billion (pensioners and injured workers), R5 billion for medical claims, and R1.85 billion for capacity building - supporting digitisation, medical staffing in provinces, and outreach to vulnerable workers.

In strengthening the institutional capacity, she said the department aim to reduce the vacancy rate to 12% by year-end. The focus is on posts critical to service delivery and addressing ICT infrastructure.

Enquiries:
Teboho Thejane
Departmental Spokesperson
Cell: 082 697 0694
E-mail: teboho.thejane@labour.gov.za

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