Only 9% of employers inspected by the Department of Employment and Labour were found compliant with employment equity legislation during the 2025/26 financial year, according to a recent announcement. Employment and Labour Minister Nomakhosazana Meth delivered the Department’s Budget Vote 31 in Parliament on Tuesday, revealing that out of 1,948 employers reviewed, only 181 met the standards, marking a 9 percent compliance rate. This low compliance rate shows the ongoing challenges in ensuring adherence to labour laws across the country.
Minister Meth stated that the Department would prioritize recruiting permanent inspectors over the remaining 10,000 interns, with R5 billion allocated for this purpose during the Medium-Term Expenditure Framework period. This significant investment is aimed at bolstering the Department's capacity to enforce labour legislation effectively. Meth also noted the positive impact of the National Minimum Wage, noting, "Since its introduction, the National Minimum Wage has benefited an estimated six million workers." This figure demonstrates the broad reach and importance of this foundational labour policy.
Legislative Reforms Underway
The Labour Laws Amendment Bill proposes critical reforms to four key pieces of legislation: the Labour Relations Act, Basic Conditions of Employment Act, National Minimum Wage Act, and Employment Equity Act. The Labour Laws Amendment Bill was approved by Cabinet for public comment and subsequently published in the Government Gazette on February 27, 2026. This key step in the legislative process allowed for broad public participation. The process generated 216 public submissions, which are currently undergoing thorough review by the Department. These submissions are vital for refining the proposed amendments and ensuring they address the diverse needs and concerns of stakeholders.
Inspection and Enforcement Efforts
A total of 1,767 employers were found to be non-compliant and received recommendations for corrective action from the Department of Employment and Labour. These recommendations are designed to guide employers towards full compliance with employment equity standards. More than 14,000 designated employers submitted Employment Equity reports, demonstrating a widespread engagement with the reporting requirements, even if compliance remains a challenge for many. Minister Meth confirmed these findings, stating, "A total of 1,948 employers were reviewed and served with recommendations. Of these, only 181 employers were found compliant, representing a compliance rate of 9 percent, while 1,767 employers were found to be non-compliant and were issued with recommendations for corrective action."
The government aims to strengthen labour inspection and enforcement capacity through Project 20,000 inspector interns. This ambitious project seeks to significantly expand the Department's boots on the ground. The first phase, involving 10,000 inspector interns, began during the 2025/26 financial year. By the end of April 2026, approximately 3,800 young interns had entered training and deployment processes, already contributing to inspection efforts. A further 3,500 interns are scheduled to begin at the end of May 2026, with another 2,700 interns starting by the end of June 2026, completing the initial cohort of 10,000 trainees.
During the 2026 State of the Nation Address, President Cyril Ramaphosa announced that 10,000 permanent labour inspectors would be appointed, signaling a long-term commitment to strong labour law enforcement. Meth clarified the Department's approach, stating, "The Department will start with the recruitment of these permanent inspectors, instead of recruiting the remaining 10,000 interns. We have set aside R5 billion for the Medium-Term Expenditure Framework (MTEF) period." This R5 billion has been specifically allocated for the recruitment of permanent inspectors during the MTEF period, ensuring sustained funding for this critical initiative. This shift aims to create a more stable and experienced inspection workforce.
Broader Labour Landscape
In the 2025/26 financial year, the Department of Employment and Labour aimed for 3,324 Employment Equity inspections. Minister Meth stated, "In the 2025/26 financial year, the Department targeted 3 324 Employment Equity inspections, including Director-General Reviews, re-assessments, and monitoring interventions." Beyond these targeted inspections, more than 11,000 non-designated employers applied for compliance certificates, indicating a broader effort by businesses to meet regulatory requirements.
The National Minimum Wage has benefited an estimated six million workers since its implementation, providing a key safety net for a significant portion of the workforce. Minister Meth confirmed this, stating, "Since its introduction, the National Minimum Wage has benefited an estimated six million workers." The Commission for Conciliation, Mediation and Arbitration (CCMA) continues its vital role in resolving labour disputes, aiming to resolve 99 percent of its cases within prescribed timeframes. Additionally, the CCMA seeks to address 90 percent of public interest disputes, noting its commitment to accessible and efficient dispute resolution services for all.
