Parliament, Wednesday, 13 May 2026 – The Portfolio Committee on Employment and Labour today adopted its Draft Report on Budget Vote 31: Employment and Labour following engagements with the Department of Employment and Labour and its entities on the strategic plan for 2025–2030 and annual performance plan for the 2026/27 financial year.
The committee considered presentations made on 29 and 30 April, as well as 6 and 13 May 2026, focusing on governance, institutional performance, budget allocations, labour market interventions, and service delivery readiness across the employment and labour portfolio.
Chairperson of the Committee, Mr Boyce Maneli, said the oversight process took place against the backdrop of persistent unemployment, weak economic growth, labour market instability, and growing pressure on public institutions to improve governance and service delivery outcomes.
He said: “The committee recognises the important role that the Department and its entities must play in advancing inclusive growth, labour market stability, workplace justice, and social protection.”
The committee welcomed the department’s strategic focus on strengthening labour market regulation, improving governance systems, modernising service delivery, and enhancing employment coordination in line with Medium-Term Development Plan priorities.
In reviewing the department’s R4.578 billion budget allocation for the 2026/27 financial year, the committee observed that expenditure remains heavily weighted toward operational costs and transfers, with limited allocations for infrastructure, systems modernisation, and digital transformation.
The committee also assessed the plans and performance of entities reporting to the department, including the Unemployment Insurance Fund (UIF), Compensation Fund (CF), Commission for Conciliation, Mediation and Arbitration (CCMA), National Economic Development and Labour Council (NEDLAC), Productivity South Africa (Productivity SA), and Supported Employment Enterprises (SEE).
While Members of the committee acknowledged the critical role played by these institutions, a concern was raised about recurring governance weaknesses, audit findings, ICT challenges, operational inefficiencies, and institutional capacity constraints affecting parts of the portfolio.
Particular attention was given to issues raised during presentations on the implementation of Audit Action Plans in response to findings by the Auditor-General of South Africa (AGSA). Members of the committee stressed the need for stronger accountability systems, improved consequence management, enhanced internal controls, and accelerated ICT reforms.
The committee further emphasised the need to improve claims processing at the UIF and CF, strengthen labour inspectorate capacity, expand labour activation programmes, and improve outreach to vulnerable and rural communities.
Following deliberations, the committee adopted the report together with recommendations directed to the Department and its entities. The report will now be tabled for debate in the National Assembly next week.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON EMPLOYMENT AND LABOUR, MR BOYCE MANELI
For media enquiries, please contact the Committee Media Officer:
Mr Temba Gubula
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Email: tgubula@parliament.gov.za
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