The Social Development Department revealed its recent Green Paper plan in which it describes why this would be done.
On Wednesday, 18 August, the department gazetted a Green Paper on Comprehensive Social Security and Retirement Reform.
The paper projects the design of a National Social Security Fund (NSSF).
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This will be a Government-managed fund that will supply disability, retirement and unemployment benefits.
The current salary ceiling is earnings of R276 000 per annum.
If one earns this amount per year, they will pay a maximum of 12%.
A new state-managed pension fund could require employees and employers to pay around 12% of their earnings to Government. Image: Stock photoSource: Getty Images
This equates to R33 100 or around R2 760 per month.
Those who earn less than R22 320 per annum will have aGovernmentsubsidy.
Where exactly does the money go?
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The initial 10% of the subsidy will make its way to the mandatory fund.
The 2% leftover will go to the unemployment insurance fund.
This eliminates having a private-sector retirement fund.
That being said, higher-income earners are also expected to contribute to private-sector pensions.
De Ruyter revealed that the country’seconomyis 25% more carbon-intensive than China, speaking per capita.
It is also double the global average.
SouthAfricaalso discharges almost half of the total carbon that has been emitted by Africa.
Eskom counts for around 44% of Mzansi’s total carbon emissions.
De Ruyter stated that due to this,it is nearly impossible to ignore the carbon footprint being left.
Eskom also plans to anchor the demand for the manufacturing of green items such as electric cars.
Although this may seem like a step in the right direction, there has been some backlash.
Source: Briefly News
Reeshni ChettyReeshni Chetty is a senior current affairs reporter.
Reeshni has a passion for breaking the stigma surrounding mental health issues.
