The Minister of Employment and Labour, Ms. Nomakhosazana Meth has noted various posts accusing the Department of Employment and Labour of not processing payment to the Department of Basic Education (DBE) for the payment of stipends for the Education Assistants (EAs) and General Education Assistants (GEAs) for the Basic Education Employment Initiative (BEEI) Phase V.

The Ministry refutes these spurious claims and wishes to set the record straight and outline the payment process in accordance with the Service Level Agreement signed between the DBE and the Industrial Development Corporation of South Africa (IDC).

The Department of Employment and Labour (DEL) stands firm in its unwavering support of the initiative, recognising its vital role in tackling youth unemployment, providing meaningful work opportunities, and supporting schools nationwide. However, as custodians of public funds, the Department has a constitutional obligation to operate within the framework of the law, the signed Multiparty Funding Agreement (MFA), and the Public Finance Management Act (PFMA).

The BEEI is governed by a Multiparty Funding Agreement signed between the Department of Basic Education (DBE), the Unemployment Insurance Fund (UIF), and the Industrial Development Corporation (IDC). This agreement requires strict compliance before the release of any tranche of funds.

Clauses 6.6.3 and 7.1 of the MFA expressly require that verified monthly attendance registers must be submitted, as a precondition for releasing subsequent tranches. These conditions ensure transparency and accountability, safeguarding both the beneficiaries and the integrity of government funding processes.

In terms of contractual agreement between DBE, DEL and IDC, the Service Level Agreement (SLA) states that the beneficiary (DBE) must upload attendance registers on the 15th of every month in order for the payment to be processed by the DEL.

The Department of Employment and Labour contributes a total of R4,013,000,000 (over four billion Rands) in funding towards the Presidential Youth Employment Initiative aimed at supporting the Education Assistants' programme. As part of the implementation process, DEL through the UIF, has to date, successfully transferred R1,956,500,000 (one billion, nine hundred and fifty-six million, five hundred thousand) on 27 June 2025, as the first tranche to enable the project rollout across all nine provinces in South Africa.

However, for the month of September, the DBE did not submit complete supporting documents, which include the attendance registers, on time. The UIF requires the attendance registers for verification in line with the multi-party funding agreement for the processing of invoices for payment of 158,000 beneficiaries from 20 000 schools. On 29 September 2025, a meeting between DBE, DEL, and UIF was held to discuss the matter and the DBE agreed they would send these documents.

Minister Meth would like to provide assurance to the Education and General Education Assistants that the Department stands ready to process the payment, the moment we receive and verify the attendance registers from the DBE. In keeping with good governance, the Minister also categorically states that the release of public funds cannot contravene the signed agreement and the provision of the PFMA.

“Releasing the funds without due process would undermine good governance, expose the UIF and the Department to audit findings and irregular expenditure, and compromise the PFMA principles that bind all government entities.

Let me be clear, the Department's commitment to the PFMA, Treasury Regulations, and the signed MFA is not red tape. It is a duty to South Africans to safeguard public resources, to ensure that programmes are credible, and to guarantee that future public employment programmes retain the trust of both the public and the beneficiaries," says Minister Meth.

The Minister has also urged all parties to refrain from inflammatory statements and urgently come to the table for constructive discussions and a speedy resolution, as thousands of young people await their stipends.

“While compliance must be upheld, I am deeply conscious of the hardship experienced by thousands of young people awaiting their stipends. We urge the DBE to accelerate the collection and submission of outstanding attendance registers in order for the UIF to process the second tranche without delay once compliance is met," says Minister Meth.

Minister Meth has reaffirmed the commitment of the Department to fully engage with all partners including the Presidency, DBE, UIF, and IDC to explore practical solutions to administrative bottlenecks.

“We are committed to ensuring that stipends reach beneficiaries promptly, but in a manner that does not compromise the principles of accountability and fiscal discipline. I hereby reaffirm our dedication to the BEEI and to all South Africans who depend on such programmes for both empowerment and opportunity. Our mission remains twofold, to uphold social justice and to preserve sound financial governance in equal measure," says Minister Meth.

ENDS//

Media enquiries:

Ms. Thobeka Magcai, Ministry Spokesperson. Email: Thobeka.Magcai@labour.gov.za | Mobile: 072 737 2205

Issued by:

MINISTRY OF EMPLOYMENT AND LABOUR 4 OCTOBER 2025​

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