Social development minister Lindiwe Zulu has withdrawn a controversial social security plan that included a proposal that workers pay up to 12% of their earnings towards a government-run fund.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But in a gazette published on Tuesday, Zulu confirmed that the green paper had been withdrawn.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.
TimesLIVE
Lindiwe Zulu withdraws controversial plan for state-run social security fund
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Social development minister Lindiwe Zulu has withdrawn a controversial social security plan that included a proposal that workers pay up to 12% of their earnings towards a government-run fund.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But in a gazette published on Tuesday, Zulu confirmed that the green paper had been withdrawn.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.
TimesLIVE
Unions shoot down 'ludicrous' government social security fund plan
Employees must pay up to 12% into a government social security fund: Zulu
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