Eswatini

Publications

Situation and Priorities

Social protection situation

Although classified as a lower middle-income country, Eswatini has high rates of poverty, with 59% of the population living below the poverty line. Social protection provision is fragmented and limited, resulting in large coverage gaps, particularly for workers in the informal economy. 

Existing social security schemes, including the Eswatini National Provident Fund (ENPF) and Workmen’ Compensation Fund, are not fully aligned with social insurance principles, lacking solidarity and risk pooling. The provident fund pays lump sum benefits, which mainly provide short-term income protection to workers. Maternity and sickness protection are provided through employer liability, and there is currently no unemployment protection scheme in place – although the ILO are currently supporting efforts to establish one. 

The government and social partners are working towards establishing a comprehensive social protection system – a National Social Security Policy and its Implementation Action Plan were developed in 2019 with ILO support and were adopted by Cabinet in 2021. The ILO is also supporting national dialogues to improve portability and access to social protection for migrant workers. 
 

COVID-19 and other crises

Eswatini confirmed its first COVID-19 case in March 2020 and the ensuing state of emergency froze economic activities in a range of sectors. By the end of May 2020, several companies had filed applications to lay off employees, resulting in over 8,000 unpaid layoffs.

As part of the crisis response, the Government announced a 25 million eSwatini lilangeni (SZL) (approx. US$1.75 million) COVID-19 unemployment relief fund to provide income support to workers in vulnerable situations.  Eligible unpaid laid-off workers received income support for two months. The Government later initiated action for establishing an unemployment benefit scheme and requested ILO support - as part of measures towards comprehensive social reforms and efforts at mitigation the impact of future crises.
 

Government and social partner priorities
  • Implementation of the National Social Security Policy (NSSP), including the establishment of a National Social Security Authority to champion the progressive realization of a comprehensive social security system
  • The NSSP seeks to establish over time, a comprehensive and inclusive social security framework in the Kingdom of Eswatini with a view to expand coverage, introduce additional social security benefits (maternity, sickness benefit, family/child benefits), improve survivors and disability benefits
  • Conversion of the Provident Fund to a pension fund - The conversion of the Eswatini Provident Fund (ENPF) into a National Scheme Pension Scheme is a long-standing goal and critical component of the Government’s comprehensive social security agenda.  The existing National Provident scheme pays lump sum benefits, which only provide short-term income protection to workers, and does not protect adequately in the longer term. Benefits depends entirely on accumulated savings and the performance of investments. In line with the NSSP, it is envisaged that the proposed National Pension scheme (a mandatory Defined Benefit scheme) will pay periodical benefits, a minimum pension and regular indexation of benefits to ensure long term protection of members. It will also extend coverage to currently uncovered populations, including the informal sector and non-citizens and ensure portability of benefits.
  • Establishment of a long-term and sustainable unemployment benefit fund that builds on the temporary COVID-19 unemployment relief scheme.
  • Establishment of an Employment Injury insurance scheme. Employment Injury is currently administered on an employer liability basis - which does not provide adequate protection
  • Develop a National Employment Policy, and strengthening/establishing public employment services to fill the gap of lack of a policy and institutional mechanisms to facilitate access to employment services and active labour market policies in line with the dual objective of unemployment protection

Results

ILO Experts

IMG
Jasmina Papa
Social Protection Specialist