Lindiwe Zulu withdraws controversial plan for state-run social security fund

A plan to make every worker contribute to a government-run fund has been withdrawn after fierce criticism.
A plan to make every worker contribute to a government-run fund has been withdrawn after fierce criticism.
Image: GCIS

Social development minister Lindiwe Zulu has withdrawn a controversial social security plan that included a proposal that workers pay up to 12% of their earnings towards a government-run fund.

The fund proposal — the full name of which is the Green Paper on Comprehensive Social Security and Retirement Reform (2021) — was published on August 18.

It sets out that contributions will be between 8% and 12% of earnings, up to the current Unemployment Insurance Fund (UIF) ceiling of R276,000 a year.

Unions were among those to have slammed the proposal.

But in a gazette published on Tuesday, Zulu confirmed that the green paper had been withdrawn. No reasons were provided.

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