South Africa's working citizens to contribute up to 12% of earnings to new fund
South Africans may be required to contribute up to 12% of their earnings to a new government-backed fund. Earlier this week, the Department of Social Development released its Green Paper on Comprehensive Social Security and Retirement Reform, which proposes the creation of a new National Social Security Fund (NSSF) - a government-managed fund which will provide retirement, disability and unemployment benefits. All employers and employees will initially be obliged to contribute up to 12% of qualifying earnings, up to a ceiling, which is currently proposed as $18,429 per year. This means South Africans will pay up to $184 a month to the fund. The first 10% of this contribution will go to the mandatory fund, rather than to a retirement fund. The next 2% will go towards unemployment insurance.
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