National Assembly – Mini Plenary Debate
03 July 2025
Budget Votes
Department of Employment and Labour
Honourable House Chair,
Honourable Minister, Honourable Deputy Ministers, ADG and her team.
Honourable Members
Today we gather to deliberate on the Budget Vote 31 for the Department of Employment and Labour for the fiscal year 2025/26. As we do so, we also commemorate two pivotal milestones that stand as pillars of our journey towards democracy, social justice, and economic transformation: the 70th anniversary of the historic Freedom Charter and the 30th anniversary of the Constitutional Court. These anniversaries serve as profound reminders of our enduring struggle for liberation and the rule of law principles that continue to underpin our efforts to build a just, equitable, and inclusive society. As we celebrate the Mandela Month we are reminded of the struggles and sacrifices made to attain our democratic freedoms and the ongoing responsibility to uphold these values through deliberate policies and effective execution.
In the current economic context characterized by significant challenges, including high unemployment rates and persistent inequalities, these milestones serve as a source of inspiration and a call to reaffirm our commitment to the ideals enshrined in our liberation charter and democratic constitution. As we reflect on this, we are reminded that our progress must be guided by unwavering resolve, strategic planning, and innovation. Our collective efforts must aim to create a society where economic participation and opportunity are accessible to all, especially marginalized groups, embodying the principles of social justice and fairness that are central to our liberation struggle. This reinforces the need for us to intensify our focus on transforming our economic landscape to be more inclusive and equitable, despite the existing fiscal and structural challenges.
The Department of Employment and Labour must play a pivotal role in this transformation, as the effective deployment of resources directly influences its ability to generate employment, uplift vulnerable populations, and foster sustainable economic growth. This budget must be viewed as a critical instrument to propel this agenda forward, even as we acknowledge some shortcomings mainly because of slow economic growth. The Department’s total budget for 2025/26 is estimated at R16.5 billion, reflecting a 10% reduction from the previous R18.3 billion, primarily due to cuts in Goods and Services and Capital Expenditure. The budget allocations warrant financial discipline amid fiscal constraints, impacting programs like Nedlac and Productivity-SA initiatives. This will have an impact on the realisation of the MTDP strategic projection.
Notably Productivity-SA budget allocation for 2025/26 is R94.75 million, declining to R78.25 million in the outer years of the Medium-Term Expenditure Framework. This declining budget may undermine programme sustainability. We further recognize that there have been delays in benefit payments, unresolved audit issues, vacancies within core staffing positions, and underspending in certain programs particularly in the Compensation Fund. These issues underline the urgent need to rethink resource allocation, improve management efficiencies, and strengthen accountability mechanisms. They highlight that, despite some administrative challenges, our overarching goal remains to prioritize high-impact programs that deliver measurable outcomes, creating real opportunities for employment, poverty reduction, and social upliftment.
Despite these hurdles, we remain resolute that the strategic focus must be on channelling investments into sectors with high potential for job creation and social impact, especially those that support township enterprises and underserved communities. We must prioritize development efforts in local industries and sectors that uplift vulnerable groups such as youth, women, persons with disabilities, and marginalized communities still grappling with remnants of apartheid-era economic disparities. This approach aligns with the goals of the District Development Model, which emphasizes localized development efforts that are tailored to the unique realities and potentials of each community. By empowering local authorities and communities to take charge of their economic destinies, we foster sustainable growth that benefits those who need it most and reduces reliance on centralized decision-making.
The district model enables more effective resource routing at the grassroots level, supporting infrastructure development, local entrepreneurship, and employment opportunities. It aims to reduce socio-economic inequalities by building resilient communities capable of sustaining their development trajectories. The department’s role in supporting this model, especially through targeted investments like the LAP, is therefore vital. These resources must be deployed strategically to promote and formalise the informal sector, stimulate entrepreneurship, and create work opportunities tailored to the specific needs of each district. Such an approach not only nurtures local economic growth but also enhances accountability by increasing the proximity between policymakers and beneficiaries.
Furthermore, our social dialogue platforms through Nedlac are crucial in fostering unity of purpose among government, labor, and business. These platforms facilitate consensus-building and coordinated action across sectors, strengthening our collective effort to implement inclusive growth strategies. By engaging all stakeholders, we will ensure that policies are better aligned with the realities faced on the ground and that the execution of developmental programs is more effective. Inclusive dialogue serves as a vital mechanism to reinforce our shared commitment to social justice and economic fairness, ensuring that the benefits of growth are broadly distributed and that nobody is left behind, therefore the recent cabinet approval of National Labour Migration Policy and Employment Services Amendment Bill is a step in right direction.
In moving forward, Honourable House Chair, a key component of government’s strategy remains the implementation of a national minimum wage, which is pivotal in reducing income inequality and providing a safety net for the most vulnerable workers, particularly farm and domestic workers. This policy aims to stimulate consumer spending and economic activity from the bottom up, fostering a more resilient economy. It aligns with our belief that shared prosperity is fundamental to societal stability: when workers earn fair wages, communities thrive, and social cohesion is strengthened. We must support and uphold this policy, even amid economic uncertainties and fiscal constraints, recognizing that it is essential for building an equitable society.
In recognizing these strategic priorities, we must also confront the realities of resource limitations and the need for more efficient management. The department must optimize resource utilization, prioritize high-impact programs, and focus on scalability and sustainability. We have seen that ineffective resource deployment hampers progress; therefore, initiatives must be streamlined to guarantee concrete results. This entails strengthening audit procedures, enhancing monitoring mechanisms, and ensuring that vacancies do not hinder program implementation. These administrative improvements are necessary to build more resilient and accountable institutions capable of delivering on their mandates.
In conclusion, even as we acknowledge the shortfalls and challenges, we remain committed to our strategic priorities. We believe that through targeted investments, inclusive industrial policies, and strengthened social dialogue, we can accelerate progress toward our goals. We understand that resource constraints and administrative issues pose hurdles, but resilience and strategic planning will enable us to overcome these obstacles. Our collective responsibility is to ensure that funds are used effectively, programs are well-executed, and that the benefits reach the communities most in need.
We are emboldened by our shared purpose and our commitment to transform South Africa into a society where opportunities are universal, dignity is a birth-right, and economic prosperity benefits all. We call on all stakeholders: government, labor, business, and communities to renew their dedication, work together with unity and purpose, and harness our collective strength to build an equitable and inclusive nation.
Together, we can turn our vision into reality, forging a society where social justice, economic opportunity, and dignity are not just ideals but lived realities for every citizen, as Nelson Mandela said, “It always seems impossible until it’s done.”
As the ANC we support this budget.
Thank You!!