The Congress of South African Trade Unions (COSATU) has urged government to consider alternative ways to raise revenue, including the possibility of a temporary contribution holiday for the Government Employees Pension Fund.
The proposal comes ahead of Finance Minister Enoch Godongwana’s Budget Speech, scheduled to be delivered in Cape Town on Wednesday afternoon.
COSATU parliamentary coordinator Matthew Parks described the one-year contribution break as a measure of last resort, intended only for times of severe fiscal strain. He noted that a similar step was taken during the administration of former president Nelson Mandela to provide short-term relief to the national fiscus.
Parks stressed that government should first prioritise strengthening revenue collection and curbing wasteful spending before considering such interventions. This includes closing tax loopholes often exploited by wealthy individuals and corporations, and ensuring the South African Revenue Service has sufficient resources to improve compliance.
He added that growing the economy and creating jobs remain central to boosting tax income needed to fund public services.
While the pension contribution holiday remains on the table, COSATU maintains it should be treated as an emergency lever the financial equivalent of breaking the glass only if absolutely necessary.