Although the government wishes to ensure adequate savings on retirement and provide for cross-subsidization, it remains unlikely that it would end tax benefits on voluntary savings as a way of boosting social pensions However, the government may phase in changes over time and introduce a cap on tax deductions, as in Britain. In South Africa, a similar system already applies to the tax treatment of medical aid contributions. It is unlikely that the government would force all citizens to invest their full pension in a single fund, and will offer a choice, as in other countries. While people could still contribute to private schemes, every citizen was likely to be compelled to fund the state's social security scheme, either by a specific allocation of part of their retirement funding contributions, or by cross-subsidisation through differential taxation.
Currently an employee with a provident fund can cash in his or her full fund on retirement. The payout is taxed, but in contrast with pension funds, the purchase of an annuity is not legally required. It is possible that the government might introduce measures requiring provident fund members to purchase annuities on retirement. The next step would be to prevent employees from gaining access to their pension or provident funds until retirement. This issue sparked strikes in the 1980s, and is still a particularly sensitive issue for trade unions, which believe workers should have access to their pension contributions to deal with life crises
When workers die as a result of occupational injuries or diseases, their dependants can claim compensation. The Basic Guide to Compensation for Occupational Fatalities explains how such compensation is determined. In addition, the Compensation for Occupational Injuries and Diseases Act provides compensation for workplace accidents or illnesses caused by hazardous workplace conditions. The following is a summary condensed from the Department of Labour website.
The Compensation for Occupational Injuries and Diseases Act applies to:
This excludes
A lump sum is paid when permanent disablement is 30% or less.
The formula for 30% is:
15 X worker's pay (up to
a maximum of less than 30% calculated proportionally) X degree of disablement
÷ 30.
Pension is paid when the degree of permanent disablement is between
31% and 100%.
The formula is: 75% of worker's pay
X degree of disablement ÷ 100.
Based on Legislation in Section 49 of the Compensation for Occupational Injuries and Diseases Act