Honourable Chairperson,
Chairperson of the Select Committee on Economic Development and Trade
Members of the Portfolio Committee
Minister Nomakhosazana Meth and Deputy Minister Jomo Sibiya
Officials of the Department of Employment and Labour
Members of the Public
Good afternoon,
We stand today at a historic crossroads as we celebrate the 30th Anniversary of our democratic Constitution and its Bill of Rights. This milestone is not merely a date on a calendar; it is a reminder that our mandate as the Department of Employment and Labour—to reduce unemployment, poverty, and inequality—is a constitutional directive to ensure the dignity and security of every worker.
Budget Vote 31 serves as our financial and strategic commitment to the National Development Plan (NDP) Vision 2030, the Medium-Term Development Plan (MTDP) 2024-2029, and the pronouncement by President Cyril Ramaphosa on his 2026 State of the Nation Address (SONA).
For the 2026/27 financial year, the Department is allocated a total expenditure estimate of R4.578 billion, representing the first year of a R13 billion medium-term investment in the South African workforce. Our responsibility in government is to ensure that these funds drive economic transformation, inclusive growth, and the protection of the vulnerable groups, women youth and persons with disabilities.
The NDP Vision 2030 requires a globally competitive and productive economy. Our entity, Productivity South Africa focuses on workplace productivity and competitiveness; as well as the preservation of existing jobs. For 2026/27, we have allocated R66.6 million to Productivity SA to drive this mission.
The evidence-based impact of this investment is a cornerstone of our strategy:
Over the medium term, Productivity SA is committed to supporting a total of 4,138 enterprises. This is not just about numbers; it is about ensuring South African businesses remain sustainable in a volatile global market. While the entity will undergo a spending review to improve its service delivery model, its role in preventing job losses remains an indispensable social plan intervention.
Honourable members,
The recognition of Productivity SA as an Africa Kaizen Centre of Excellence signifies that the entity has reached a benchmark of international standard in implementing "Kaizen"—a Japanese philosophy of continuous improvement in productivity and quality. This status confirms PSA as the continental hub for best practices, positioning South Africa as the primary leader in driving industrial efficiency across Africa. Expanding impact requires sustained funding, specialist skills, and stronger partnerships with municipalities, industry and international institutions.
The Supported Employment Enterprises is an essential instrument for the economic empowerment of persons with disabilities. For the 2026/27 financial year, we have allocated R205.9 million to support the operations of our 13 factories located across eight provinces.
The work that this entity does (SEE) directly advances our MTDP 2024-2029 priority of providing specialised employment opportunities for persons with disabilities- opportunities that would otherwise be unavailable to them.
The Department derives its authority to manage the SEE from the Employment Services Act. The Employment Services Amendment Bill seek to modernise the framework under which SEE operates, ensuring it remains an effective tool for economic inclusion.
Furthermore, we are utilising the Amendment Bill to clarify SEE's legal identity and institutional credibility, while focusing on our strategic policy to modernise our production lines to leverage government procurement to ensure the state itself drives economic inclusion.
Honourable Chair,
To ensure that the benefits of our R205.9 million SEE budget are felt across the entire country, we are working to expand our reach to currently unserved regions. To this end, I have engaged in successful discussions with the Premier of Mpumalanga aimed at establishing a factory in that province. This move ensures that our mission of economic empowerment for persons with disabilities is truly national, leaving no citizen or province behind.
In various provinces such as the Eastern Cape, Free State, Gauteng and North-West, we are intensifying our efforts to coordinate integrated services for ex-mineworkers, ensuring they receive the benefits and social protection due to them.
We are conducting targeted Stakeholder Advocacy in high-risk sectors, including Hospitality, Domestic Work, and Manufacturing. These initiatives are designed to foster a culture of self-regulation and compliance with the Basic Conditions of Employment Act and the Employment Equity Act, moving workers from the margins of the informal economy into the security of formal employment.
We cannot ignore the rising social tensions and protests stemming from the presence of undocumented foreign nationals in our labour market and the perception that they are displacing South African workers. These frustrations are a direct call for enhanced regulation and order in our workplaces. The Department developed the National Labour Migration Policy as a strategic framework to regulate the employment of foreign nationals while coordinating government efforts toward economic transformation and job creation. The policy seeks to ensure that foreign nationals are employed primarily in sectors where specific skills do not currently exist in South Africa- and that is scare skills. A critical objective of the policy is to address social tensions by prioritizing the protection of South African work seekers and maintaining order within the domestic labour market. Furthermore, we will ensure that our labour laws are not bypassed to exploit vulnerable workers or undermine the domestic workforce.
Honourable Members, as I draw this debate to a close, let us reflect on the profound truth that the 'flower of peace cannot be sustained by unemployment, poverty and inequality". We must be honest: the frustration of South Africans, particularly our graduates and youth who hold qualifications but no opportunities, is both real and legitimate. They represent our nation's ambition and hope, yet they remain on the periphery of our economy. As government, we cannot respond with defensiveness; we must respond with the humility of service and the decisive action found in this Budget Vote.
This Vote is a factual, evidence-based plan to move South Africa forward. Whether it is the 312,995 inspections to protect workers, 605 000 citizens we will help transition into employment through Labour Activation Programme, the 136,000 jobs created through the PYEI, or the 4,000 jobs saved by Productivity SA, every rand in this Vote is targeted toward building a more equitable society.
As indicated, we are not merely debating numbers; we are debating the dignity of the South African worker and the future of our youth. We are committed to an administration that is accountable, efficient, and unyielding in its pursuit of social justice.
As the Executive, we are united in purpose and inspired by the vision of the Freedom Charter — to build the South Africa we want: a South Africa that works, a South Africa that includes, and a South Africa that belongs to all who live in it.
I thank you.
© 2019 - The South African Department of Employment & Labour
