by Dev_SACCAWU | Labour Market News
Finance Minister Enoch Godongwana is set to deliver the national Budget in the National Assembly on Wednesday, amid mounting pressure to address soaring unemployment and sluggish economic growth.
Labour federations, the Congress of South African Trade Unions (COSATU) and the South African Federation of Trade Unions (SAFTU), have called for a budget that prioritises job creation and economic recovery.
COSATU spokesperson Matthew Parks stressed the need for urgent intervention.
“The budget must respond decisively to the hardships faced by the working class. It must provide hope to society and be anchored in tackling our dangerously high unemployment rate of 41.1%, weak economic growth of 1.4%, entrenched poverty and inequality, as well as endemic crime and corruption,” Parks said.
SAFTU described the 2026 Budget as being tabled at a time of profound economic and social crisis, urging the government to reject further austerity measures.
Federation spokesperson Asive Dyani warned that continued fiscal contraction would worsen instability and undermine long-term growth.
“The fiscal crisis cannot be separated from mass unemployment and deindustrialisation. South Africa continues to experience factory closures, retrenchments, and declining productive capacity across manufacturing, steel, mining value chains, agro-processing, and chemicals,” Dyani said.
Source: https://vocfm.co.za/pressure-mounts-on-finance-minister-ahead-of-budget-speech/
by Dev_SACCAWU | Labour Market News
South Africa Latest News,South Africa Headlines
The medical aid tax rebate and fuel levy hikes are set to dominate scrutiny of South Africa’s latest national budget.
The medical aid tax rebate and fuel levy hikes are set to dominate scrutiny of South Africa’s latest national budget.With last year’s value-added tax debacle still fresh in everybody’s mind, today’s budget tabled by Minister of Finance Enoch Godongwana is set to be a “feel better” budget that will promote the GNU effectiveness, an expert says.
It will be an election budget designed not to upset too many people, but to promote the effectiveness of the government of national unity, Daniel Silke, a political economy analyst, said.“It will also be to show voters that the country is showing signs of stability and indeed recovery in the economy. “Maybe there will be some concessions when it comes to living costs, given there will be some improvements in revenue coming through in the budget,” he added. The country, in addition to the sin tax, must expect another hike in the fuel levy, which the analyst describes as the “cash cow” for the government and an easy target every budget to raise costs.Various stakeholders will scrutinise today’s budget closely to see if it meets their expectations amid the promising economic performance.While they are all on the same wavelength on tangible economic growth, a call by trade unions and civil society to tax the rich persists.The tax on medical aid rebate and wealth featured prominently in the civil society debate. One of organisations, Alternative Information & Development Centre , want the medical aid tax concession cancelled to create more jobs for the jobless. It cited the plight of unemployed graduates, shortage of teachers, health workers and police officers. The proposal to halt the tax reduction for medical aid members and the rumours that Godongwana or the SA Revenue Service is contemplating implementing the idea in future, open another avenue of concern for both medical aid members and the sector, alongside the fear of National Health Insurance’s impact on private care profits. The tax credit is a fixed monthly rebate, not a percentage of contributions, adjusted annually by Sars. For the 2026 tax year, it is R364 for the main member, R364 for the first dependant, and R246 for each additional dependent per month.there are many tax benefits that disproportionately benefit the elite in South Africa and the medical aid tax credit is just one of these benefits. “We do not anticipate Sars or National Treasury removing the medical aid tax credit in the upcoming budget. Historically, this government prioritises the interests of the elite over two-thirds of South Africans living in poverty,” Chikte said. The medical aid tax credit costs the fiscus R30 billion per year, with 40% of this amount going to those earning above R500 000 per year. “At the same time, the Social Relief of Distress grant is unable to reach half of the qualifying applicants earning less than R624 per month.“In the world’s most unequal country, there must be increased pressure on treasury to enhance and maximise the progressivity of the tax system,” Chikte said.AIDC suggested implementing tax credits instead of tax deductions, which apply to high-income-earning retirees. It argued the current structure of the retirement contribution tax deduction benefits higher-income taxpayers disproportionately and “therefore contributes to exacerbating inequality”.“AIDC highlighted the difference between the two, noting that while tax deductions are applied against taxable income, tax credits are applied against the taxpayer’s tax liability,” it said. Silke expects the budget would tout improved stability in the economy, for which the GNU parties would like to take credit. Other contributory factors were a tax windfall from mining, the rands improvement, the slightly lower interest rates and South Africa’s removal from the greylist. On the medical tax rebate, the analyst doubted if the halting of medical aid tax reduction would automatically translate into mass job creation. Medical aid tax versus employment creation could not be the subject of an on-off political gamble as job creation required a host of right policy choices and confidence-building measures. Add The Citizen as a Preferred Source on Google and follow us on Google News to see more of our trusted reporting in Google News and Top Stories.
Source: https://za.headtopics.com/news/feel-better-budget-what-to-expect-from-godongwana-s-80227810
by Dev_SACCAWU | Labour Market News
Mining iron ore, Pixabay
Finance Minister Enoch Godongwana’s budget speech comes as local manufacturers buckle under pressure, including a tougher tariff regime which has impacted on exports.
Some labour unions are demanding targeted industrial support for vulnerable sectors such as clothing, textiles and footwear when budget 2026 goes live om Tuesday.
Finance Minister Enoch Godongwana’s budget speech comes as local manufacturers buckle under pressure, including a tougher tariff regime which has impacted on exports.
Labour unions said the factory closures, retrenchments, and declining productive capacity across manufacturing, steel, mining value chains cannot be ignored.
Federation of Unions of South Africa (FEDUSA), Congress of South African Trade Unions (COSATU) and South African Federation of Trade Unions (SAFTU) agree that without rebuilding the domestic industry, revenue will remain constrained and unemployment entrenched.
COSATU spokesperson Matthew Parks said, “The budget must be anchored upon tackling our dangerously high unemployment rate of 41.1% and weak 1.4% economic growth, entrenched levels of poverty and inequality, endemic crime and corruption.”
FEDUS said industrial policy must defend existing jobs while building new capacity in beneficiation and green manufacturing.
SAFTU said a job-creating budget is the only sustainable fiscal strategy.
The federation wants large-scale public investment in infrastructure and energy security, industrial rebuilding and localisation and expanded
Source: https://www.ewn.co.za/2026/02/25/budget-2026-labour-unions-demand-targeted-support-for-vulnerable-sectors
by Dev_SACCAWU | Labour Market News
Finance Minister Enoch Godongwana is set to deliver the 2026 National Budget Speech on Wednesday, with government expected to outline fiscal plans aimed at supporting economic recovery and development.
Enoch will present the budget at 14h00 at the Nieuwmeester Dome in Cape Town under the Parliament of South Africa.
The budget speech comes after the State of the Nation Address by President Cyril Ramaphosa, which highlighted government policy priorities for 2026.
Also see: Minister Godongwana confirms budget speech will proceed as planned
The budget is expected to detail how these programmes will be financed amid ongoing economic pressures.
Economic reforms are likely to feature prominently in the fiscal outlook, with the African National Congress (ANC) calling for increased focus on electricity, logistics and water infrastructure investment.
Also see: Godongwana trims budget waste to save R6.7bn
ANC Member of Parliament and Chairperson of the Standing Committee on Finance Joe Maswanganyi said the party supports reforms that can strengthen economic performance.
“The ANC is calling for key reforms in electricity, logistics, and water in the 2026 National Budget,” Maswanganyi said.
Meanwhile, Labour federation Congress of South African Trade Unions (COSATU) and its affiliates are expected to protest in Cape Town ahead of the speech, opposing proposed austerity measures, which they argue could affect workers and public services.
The 2026 Budget Speech will set government spending priorities for the coming financial year and provide guidance on fiscal policy, infrastructure investment and economic growth strategies.
First published by African Insider
Compiled by Betha Madhomu
Also see: Fuel levy hike likely in 2026 Budget despite cheaper petrol
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by Dev_SACCAWU | Labour Market News
Protests in Cape Town outside parliament ahead of the budget speech on Wednesday, 25 February 2026.
Picture: Katlego Jiyane/EWN.
In addition to halting budget cuts, the collective is calling for job creation and significant tax relief for the working class.
Numerous civil society and working-class organisations have converged outside Parliament today ahead of the 2026 Budget Speech.
Finance Minister Enoch Godongwana is set to deliver this year’s budget at the Dome outside Parliament as South African households continue to navigate a relentlessly rising cost of living.
Just meters away from the venue, hundreds of protesters have gathered to ensure their voices are heard before the Minister takes the podium.
Close to one thousand protesters from various organisations have united under the banner “Cry of the Excluded.” Their primary demand is for the government to reverse its stance on austerity measures.
The demonstration includes members from COSATU, SACP, Equal Education, Housing Assembly and Unite for Change.
In addition to halting budget cuts, the collective is calling for job creation and significant tax relief for the working class.
Siyabulela Mama, spokesperson for Cry of the Excluded, emphasised that the current economic trajectory is unsustainable for the country’s most vulnerable citizens.
“We are here today to call for a universal basic income grant that is above the poverty line,” Mama said. “This budget needs to speak to that because, in South Africa, we face a crisis of unemployment.”
Mama added that the collective expects Minister Godongwana to abandon austerity policies, which they argue have left the poor struggling to meet their most basic needs.
Source: https://www.ewn.co.za/2026/02/25/civil-society-groups-gather-outside-parliament-to-demand-end-to-austerity
