Nomakhosazana Meth says only 9% of employers inspected by the Department of Employment and Labour were compliant with employment equity legislation during the 2025/26 financial year.
The Minister revealed the figures while delivering the Department of Employment and Labour’s Budget Vote 31 speech in Parliament on Tuesday.
Meth said government is intensifying workplace inspections and introducing labour law reforms aimed at improving worker protection and increasing employer compliance.
Labour Law Reforms Proposed
Meth explained that several labour law amendments are currently under review through the National Economic Development and Labour Council (Nedlac) process.
“Through the National Economic Development and Labour Council (Nedlac) process, the Labour Laws Amendment Bill proposes critical reforms to the Labour Relations Act, Basic Conditions of Employment Act, National Minimum Wage Act and Employment Equity Act.”
“These changes are aimed at strengthening worker protection, improving dispute resolution, reducing unnecessary compliance burdens for small businesses and aligning legislation with Constitutional Court and Labour Court judgments,” the Minister said.
The Labour Laws Amendment Bill was approved by Cabinet and published for public comment in the Government Gazette on 27 February 2026.
According to Meth, the process received 216 public submissions which are currently being reviewed.
Employment Equity Compliance Remains Low
The Minister said more than 14 000 designated employers submitted Employment Equity reports following the implementation of the Employment Equity Amendment Act and sectoral numerical targets.
More than 11 000 non-designated employers also applied for compliance certificates.
Despite this, overall compliance remains low.
“In the 2025/26 financial year, the Department targeted 3 324 Employment Equity inspections, including Director-General Reviews, re-assessments, and monitoring interventions.”
“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,” Meth said.
Government To Recruit 10 000 Permanent Labour Inspectors
Meth announced that government is strengthening labour inspection and enforcement capacity through Project 20 000 inspector interns.
“The first phase of 10 000 inspector interns commenced during the 2025/26 financial year, and by the end of April 2026, approximately 3 800 young interns had already entered training and deployment processes,” the Minister said.
She added that another 3 500 interns will begin training at the end of May, while a further 2 700 interns are expected to start by the end of June 2026.
“These young recruits are the new boots on the ground in the fight against labour exploitation, non-compliance and workplace injustice,” she said.
Meth also confirmed that government will now move toward appointing 10 000 permanent labour inspectors following an announcement by Cyril Ramaphosa during the 2026 State of the Nation Address.
“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,” she said.
National Minimum Wage Continues To Support Workers
Meth said the National Minimum Wage continues to provide support to millions of workers across South Africa.
“Since its introduction, the National Minimum Wage has benefited an estimated six million workers,” she said.
The Minister also highlighted the work of the Commission for Conciliation, Mediation and Arbitration (CCMA) in resolving workplace disputes and preserving jobs.
“In the current year, it targets the resolution of 99% of cases within prescribed timeframes and seeks to address 90% of public interest disputes while supporting the preservation of jobs during retrenchment processes,” she said.
Additional reporting by SANews.gov.za.
