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Mavuso believes another reform programme will hurt, rather than benefit employees

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The BLSA CEO has stressed that a new social security reform programme could be detrimental to workers, as contributing their earnings could impose additional financial burdens on struggling employees.

On Tuesday, 24 August 2021, Business Leadership South Africa’s (BLSA) CEO, Busi Mavuso indicated that the green paper on a new social security reform programme may be debilitating for workers. It would require them to contribute between eight to 12 percent of their earnings.

Mavuso has drawn attention to the fact in the midst of South Africa’s economy struggling to breach the 2 percent growth mark in generating employment opportunities. She further noted that the Congress of South African Trade Unions (COSATU), and other unions, understandably slammed the plan, referring to it as an additional tax on their already over-taxed members.

Mavuso believes this plan will further eat into disposable income levels in the country and weaken consumer confidence. She also noted the words of Stephen Smith, the Senior Policy Advisor at the Association for Savings and Investment South Africa (ASISA), who said that any future social security reform programme needs to build on and not disrupt existing contractual savings and life insurance arrangements of both public and private sector employees.

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