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Good News: Unions Calls For Basic Income Salary Starting Next Year, Find Out

The organized workforce has called for the permanent introduction of a basic income subsidy in South Africa from 2022. 


The South African Congress of Trade Unions (Cosatu), the National Congress of Trade Unions (Nactu) and the South African Federation of Trade Unions (Fedusa held their Nedlac-organized mid-year work school this week to review progress on implementation to evaluate important policy measures in South Africa this should be the first step towards universal income. "It is now to be made permanent and used as the basis for a basic income. 


" It is to be extended beyond March 2022 and adjusted accordingly should include their expansion and improvement in the declaration on budgetary policy at medium level. Deadline in October ". 


The pressure on a universal income comes after the Ministry of Social Development published a green paper in which the introduction of a subsidy fund for the basic income through additional tax was proposed 


Minister Um said the government had been heavily criticized for the value of the Covid19 R350 grant for emergency social assistance. While many appreciated the Covid help, being 40 below the poverty line makes a small dent as many people are still starving and starving, he said. 

"The value options then depend on the goals the state wishes to achieve first, including but not limited to: reducing hunger, reducing poverty, and improving the living standards of our people. " 


The Green Paper suggests the following options, depending on the goals the government wants to achieve first: 


Reduce hunger: This option would have the value of the subsidy around the Food Poverty Line (FPL). Settings are R585 per month. Reduce Poverty: This option would require the grant value to be distributed around the Lower Limit Poverty Line (LBPL). As of the adjustments in 2020, this will be R840 per month. Improve people's standard of living: In this case, the value should be significantly higher, but at least above the upper poverty line (UBPL). Starting with the adjustments in 2020, this will be ZAR 1,268 per month.“Studies carried out on a decent standard of living indicate an income of around 7,500 Rand per person per month. This is a desirable value that the government should achieve through a combination of transfers, labour and economic policies, ”the ministry said. 

A micro-simulation for universal income support at the level of the food poverty line (R585) suggests that the financial cost will be around R200 billion and that income taxes will need to be increased by 10 percentage points. "At face value, these amounts seem astronomical and even impossible," said the ministry.“For the majority of the population, the benefit received is likely to be higher than their tax increase, depending on the amount of the transfer. 


"The wealthiest deciles of the population will, on average, experience a little decline in income, and the effects can be reduced if implemented gradually over some time. "


Source: https://businesstech.co.za/news/finance/515112/unions-want-a-basic-income-grant-in-south-africa-from-next-year/

Content created and supplied by: IzwilaMzansi (via Opera News )

Cosatu Covid Ministry of Social Development South African Congress of Trade Unions Um

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