Minister of employment and labour Nomakhosazana Meth. File photo (Freddy Mavunda/Business Day)
Meth says expansion aims to close enforcement gaps as only 2%-5% of SA workplaces are currently inspected
The department of employment and labour has estimated that President Cyril Ramaphosa’s proposal to appoint 10,000 additional labour inspectors could cost about R10bn over the medium-term expenditure framework (MTEF), according to a written parliamentary reply.
The figures were disclosed in response to a question from MK Party MP Andile Nchabeleng to employment and labour minister Nomakhosazana Meth about the feasibility and cost implications of the plan announced during the state of the nation address on February 12.
In her reply to the National Assembly, Meth said the expansion of the inspectorate is intended to address longstanding gaps in labour inspection and enforcement around the country.
Administrative data collected by the inspectorate over nearly two decades shows only about 2%-5% of workplaces in South Africa have been covered through advocacy, inspections and enforcement activities.
Meth said the scale of the labour market far exceeds the current inspection capacity. She cited several indicators of the number of workplaces operating.
These include Stats SA’s Quarterly Employment Survey, which uses about 20,000 VAT-registered businesses in the formal sector, and the Commission for Employment Equity report, which recorded 29,269 designated employers that submitted employment equity reports in 2024.
Other estimates referenced by the department include about 4-million registered companies recorded by the South African Revenue Service and about 2.7-million small, medium and micro-enterprises estimated by the South African Chamber of Commerce and Industry.
The department also referred to guidelines from the International Labour Organisation, which recommends a ratio of one labour inspector for every 10,000 workers in developing economies. South Africa currently has about 16.8-million employed people, excluding workers in the informal economy and some SMMEs, which further increases the scale of the inspection challenge.
Meth said appointing an additional 10,000 inspectors would “significantly improve the operational reach of the inspectorate and make an impact in the South African labour market”. The department said the increase would also help respond to growing demand for its services, including the regulation of undocumented migrant workers.
Financial estimates contained in the reply indicate that employing 10,000 inspectors would cost about R3.7bn a year in salaries and wages. Over the MTEF period, the total cost is expected to reach about R10bn.
The projected expenditure would cover basic salaries, leave pay and gratuities, performance-based allowances and bonuses, statutory contributions such as pension and medical aid, as well as tools of trade required by inspectors.
The department said funding for the initiative is expected to come from the National Treasury, which typically finances commitments announced by the president during the state of the nation address.
Meth also confirmed that a detailed project and implementation plan is still being developed. Once finalised, the framework will first be submitted internally for approval before being tabled. The department indicated that the implementation framework is expected to be completed by March 13.
Source: https://www.timeslive.co.za/news/south-africa/2026-03-09-r10bn-plan-to-hire-10000-labour-inspectors/