Social Protection Floor in South Africa

Social protection floor

Since South Africa’s transition to democracy in 1994, there have been many accomplishments in the different fields of social security leading towards a universal coverage. Pursuant to the Constitution, which guarantees both civil and political rights, as well as social, economic and cultural rights, the government adopted a broad social protection framework, guaranteeing various social transfers and basic social services. A social protection floor is essential in order to secure basic human rights, such as access to health care and education, decent old age living conditions, protection against work injuries or illnesses and provisions in case of unemployment and other precarious situations. To this end, a three-pillar social protection framework was created. The first pillar, composed of non-contributory schemes, is the floor of the social protection system. The following programmes make up the first pillar of South Africa’s social security system:

1. Old age grant (payable to citizens aged 60 and older) | read more

2. War veterans grant (payable to veterans from World War II or the Korean War) | read more

3. Disability grant (subject to a medical assessment report confirming disability) | read more

4. Care dependency grant (payable to parents or caregivers of children with disabilities between the ages of 1 to 18 – subject to medical assessment report confirming disability) | read more

5. Foster child grant (payable to a person accorded foster parent status by a court of law) | read more

6. Child support grant (payable to poor households with children) | read more

In addition, South Africa provides supplementary cash and in kind transfers;

1. Grant in Aid (payable to any person in receipt of an Older Persons Grant) | read more

2. Social Relief of Distress (payable for a maximum of three months to any person that is not benefiting from another social grant and who is living in the most dire of economic circumstances) | read more

Total Number of Social Grant Beneficiaries 2007/08 – 2013/14 (in thousands)

_{Source: South Africa Treasury, 2011 Budget Review, Chapter 7}

Successes and challenges ahead

There are now 14.4 million people receiving social grants in South Africa – which is more than a quarter of the population and over six times the number of grant beneficiaries in 1998. Social assistance will contribute ZAR97.6 billion to household income in 2011/12, representing a substantial and enduring program of poverty alleviation. Income support makes a tangible difference to households with little or no income, along with in-kind transfers, fee waivers, subsidies and other social wage benefits.

With that said, South Africa still lacks a comprehensive social security system providing adequate and sustainable social protection for the bulk of the working population. One of the problems identified is relative to the lack of access to essential health care for all. In response, the implementation of a National Health Insurance is intended in the next couple of years. Another challenge is the exclusion of eligible children from child benefits caused by administrative deficiencies. Also, although child benefits have had a positive impact on the well-being of children, there is lack of support for caregivers and for young adults who compose the majority of the unemployed. High unemployment rates are precisely one of largest problems South Africa has to face, since a large portion of the population is uninsured and there is no existing form of income support for adults who face structural unemployment. As for Old age and Disability benefits, an extension of coverage to introduce a universal benefit and a mandatory social security scheme are being considered.

Administrative difficulties are common in the different fields of social security. Coordinated policy development and service delivery are needed in order to achieve an improved social security system. This relates to the fact that the responsibility and authority for social security is divided between several departments, service delivery agencies operate separately from each other with low levels of integration, coordination, or cooperation.

 

Social security schemes and programs by branch