Pension
South Africa has no national retirement scheme and no mandatory retirement. The South African Social Security Agency (SASSA) offers a means-tested old-age grant to persons aged 60 and over if their annual income is below a certain amount. The maximum old-age pension is ZAR 2,310 per month and ZAR 2,330 for pensioners aged 75 or older.
Old-age pensioners who require full-time attendance by another person owing to their physical or mental disabilities are also eligible for a Grant In Aid of ZAR 560 per month. These grants are financed through general tax revenues collected on a national basis.
There is a separate pension scheme for government employees in South Africa. It is covered by the Government Employees Pension Fund (GEPF), which pays lump-sum benefits and monthly pension depending on the years of service. Members contribute 7.5% of their monthly salary and employers contribute 16% of their salary.
Dependents/Survivors Benefits
The Unemployment Insurance Act of South Africa grants the surviving spouse, life partner, or dependent child (under 21 years of age or 25 years if studying) the dependent's benefits if the deceased employee had been contributing to the Unemployment Insurance Fund and had accumulated benefits at the time of death. Benefits are paid as 38-60% of the deceased employee's income.
The South Africa Government Employees Provident Fund (GEPF) also provides benefits to surviving spouses and dependent children of deceased government employees.
All employers are responsible for paying survivor benefits through the Compensation Fund in case of death due to occupational reasons.
Invalidity Benefits
Invalidity benefits are paid in the case of non-occupational accident/injury/disease resulting in permanent invalidity. Persons 18 to 59 years of age assessed as having a temporary disability for more than 6 months may receive up to ZAR 2,310 (South African rands) per month and are considered permanently disabled if assessed as medically disabled for more than 12 months. If the employee is admitted to an institution that has a contract with the state to care for them, benefits are reduced to 25% of their maximum amount.
In the case of work injuries, the South African Compensation for Occupational Injuries and Diseases Act covers benefits for employees payable by employers. Benefits are paid according to the type and degree of disability. This benefit's maximum income limit is set to ZAR 597,328 per annum (ZAR 49,777.33 per month), effective March 2024.