The Eighth Pay Commission has not yet come into effect, but continuous updates are being received regarding it. Labor unions have presented their demands to the government, including the issue of the Fitment Factor, and the government is holding relevant meetings. A report from the new pay commission will be prepared after discussions. More than a million government employees and pensioners are paying attention to this matter.
Among all the demands put forward by the unions, the most important is the increase in the Fitment Factor. The unions demand that this factor be increased to 3.83 under the Eighth Pay Commission. They consider this a necessary condition to restore the real purchasing power of wages, which has decreased due to inflation over many years. However, according to recent reports, the government may offer a compromise instead of fully meeting this requirement.
Currently, the government is engaging in dialogue with the unions and other stakeholders on this issue. After the discussions conclude, a report will be prepared and submitted to the Cabinet (Council of Ministers) for approval, after which it will be implemented. According to available data, nine meetings have taken place between the government and union organizations, and further negotiations are planned.
The demands for an increase in the Fitment Factor are not arbitrary, as this factor plays a key role in increasing wages. It can be assumed that if the Fitment Factor is increased to the demanded 3.83, the minimum basic salary of government employees will rise from the current 18,000 rupees to approximately 69,000 rupees. It should be noted that the current Fitment Factor for government employees is 2.57.
The Fitment Factor is an indicator used by the Central Wage Committee to convert the previously adjusted basic salary (or pension) of an employee into a new, adjusted salary structure. Any change in this factor directly affects the salary, pension, and related arrears. The calculation formula is as follows: 'New Basic Salary: Current Basic Salary x FF'.
Calculating the salary through the Fitment Factor is quite simple. According to the formula, with the current Fitment Factor of 2.57 under the Seventh Pay Commission, the minimum basic salary is 18,000 rupees. If this factor is increased to the demanded 3.83, the minimum basic rate will be 68,940 rupees (18,000 rupees x 3.83). Thus, this will lead to a direct salary increase of approximately 51,000 rupees.
The six-month period for payments of child benefits and material assistance, which were assigned in February 2026 to families deemed needy, is nearing its end in Uzbekistan. These payments will cease in August, and their further extension will be directly dependent on whether able-bodied family members are employed.
The National Agency for Social Protection warns that the state will stop providing funds if an able-bodied family member has not had official employment within the last six months. Support will also cease if a citizen has rejected a suitable job offered by the Employment Service two or more times.
To avoid losing state aid and ensure the continuity of payments, able-bodied citizens must officially confirm their employment. This can be done by signing an official employment contract, registering as an individual entrepreneur with regular tax payments, or obtaining the status of a self-employed person with full payment of the social tax.
The department emphasized that child benefits and material assistance are intended exclusively to support families that are genuinely in need. Consequently, the main condition for receiving these payments remains the active participation of able-bodied citizens in official employment activities.
Nine miners who were fired for allegedly conducting an illegal picket have been reinstated after a labor court could not definitively determine whether they were celebrating an upcoming wedding or genuinely protesting.
The question of whether the incident was an illegal picket or merely a rehearsal for wedding dances and songs became central before the Johannesburg Labour Court. The miners appealed to the court to regain their jobs, claiming they were only rehearsing for a colleague's upcoming wedding. Initially, the dispute was directed to the CCMA, but that organization declined to hear it, deeming it related to a strike, and referred it to the labour court.
The union Amco, representing the workers' interests, stated that the dismissal by Fraser Alexander Ltd was unfair. The company, however, insisted that the employees were fired for violating discipline in the form of an illegal picket. The incident occurred while the workers were engaged in work that was subcontracted to their employer.
Fenye Mupelwa, operations manager at Fraser Alexander, testified in court that there had been a labor conflict prior to the tragic day of August 22, 2019, related to employee dissatisfaction with overtime conditions. That morning, he noticed some workers writing posters with slogans such as 'sifuna ukuqondisa ikampani,' which means 'we want to put the company in order.' He asked the employees to stop such actions and follow established procedures, noting that the company had not received notification of a strike and that no regulations were being followed.
Around lunchtime, the employees began singing. Mupelwa reported that he was in the office when the workers left their warehouses towards the gates. He claimed that the employees were singing a song with the phrase 'down with Fraser Alexander, up with Amcu' and carrying posters with the inscription 'we want our money back.' When asked in court whether he heard wedding songs, he replied that he did not recall hearing such songs, adding that the posters contained nothing related to marriage and lacked slogans like 'down with bachelorhood.'
Mashifane, the groom and one of the dismissed workers, maintained that the singing and dancing took place outside the gates. He testified that the songs included words such as 'semotshweri tshweri senatla,' which, according to his explanation, means 'a big man is growing up,' and that this is a song performed at weddings. According to Mashifane, the workers held posters inscribed with 'my life’s destiny,' and he noted that he was excited about the upcoming wedding, and the employees were happy for him.
Another worker gave testimony that management was too far from where the singing and dancing was taking place to read the inscriptions on the posters without binoculars. It was established that although there were CCTV recordings showing the events of that day, these recordings disappeared because they were in a stolen company vehicle. Presiding Judge M Mkhatshwa questioned management as to why they did not use mobile phones to record video while near the scene. He noted that while the theft of the surveillance recordings was regrettable, the fact that the company never made backups of this critical evidence was concerning. Since there was no proof that the workers were singing, or what was depicted on the posters, the court ruled to reinstate them with payment of back wages.
The Ministry of Internal Affairs has launched an expedited visa program that prioritizes the attraction of technological talent. This program is part of the South African Department of Home Affairs' Trusted Employer Scheme (TES).
The TES scheme allows for the pre-vetting of employers, meaning their work visa applications require less documentation and are processed on a priority basis. The scheme was officially published in the Government Gazette on July 20, and its minister, Leon Schreiber, signed the notification on July 11.
The first of three assessment pathways, designed for operations based in South Africa, evaluates applicants based on four criteria out of 100 points: investment commitments (30 points), employment (25 points), economic sector (25 points), and skills transfer (20 points). To qualify, a company must score a minimum of 80 points.
The technology industry will benefit from the sector criterion. The gazette provides 15 points for companies in manufacturing, advanced manufacturing, services, and raw material industries, but companies in the energy sector or 'strategic integrated projects' can receive the maximum of 25 points. These projects are defined as covering 'energy, transport, water management, and digital communications.' Applicants must provide a certificate from the Department of Trade, Industry and Competition confirming their field of activity.
Under the employment criterion, a company must have at least 100 employees, with at least 60% being South African citizens or permanent residents. If the staff exceeds 150 people while maintaining the same ratio, 25 points are awarded. Companies with fewer than 100 employees receive zero points for this metric, which excludes most local startups from the program.
The investment factor requires fixed capital investments exceeding 100 million rand, excluding operating expenses, either through commitments to the South African Conference or as proven investments since 2018. Investments between 100 and 200 million rand yield 20 points, and amounts over 200 million rand yield 30 points.
The second pathway targets companies that manage or commit to establishing a regional or global headquarters in South Africa within 12 months. This pathway places the strongest emphasis on financial contribution, awarding it 50 points. This requires cumulative corporate income tax and PAYE contributions to SARS exceeding 500 million rand over the last two tax years. Companies that have not yet established an office can apply by providing an auditor's report confirming a budget exceeding 500 million rand.
The third pathway, new for Phase 2, covers so-called synthetic financial centres in South Africa's financial sector. It depends on approval from the Reserve Bank's Financial Sector Conduct Authority. This pathway directs visa applications through the 'SFC Visa Facilitation Office,' which must confirm that 'all proposed roles align with qualifying OFO codes in the critical skills list, including any additions proposed and accepted' by the internal department, and that the applicant has passed the preliminary assessment against the department's points-based work visa system.
Richard Firth, CEO of MIP Holdings Software, noted that the scoring systems reflect the true intent of the scheme. According to him, 'the scoring systems clearly show that this is not just immigration policy, it is investment policy.' He emphasized that significant capital investments, large corporate tax contributions, and the establishment of regional headquarters receive high rewards. The government is essentially stating: if you contribute significantly to South Africa, we will facilitate your ability to attract the necessary people to grow your business.
Firth previously argued that the South African regulatory environment encouraged multinational corporations to outsource local skills abroad rather than invest in them domestically. He believes Phase 2 partially addresses this issue. 'By rewarding companies that establish regional headquarters, invest significant capital, and create jobs here, South Africa becomes a more attractive place for global business expansion. This creates more high-paying jobs for South Africans and increases the likelihood that talented professionals will stay in the country instead of seeking work abroad.'
However, Firth questioned how the gazette assesses skills transfer. This factor is worth 20 out of 100 points in the first pathway but is entirely absent among the four factors in the headquarters pathway and carries five points in the financial sector assessment system, where the commitment is to hire at least five South African citizens or permanent residents within 24 months of commencing operations.
Firth asked: 'The real question is whether we are using immigration to build local capacity or simply to fill immediate gaps.' He noted that skills transfer is worth 20 points under the investment route but disappears completely for companies establishing regional or global headquarters, where the dominant metric becomes tax contribution. 'Long-term economic success depends on retaining knowledge within the country. Every specialist entering the country should leave South Africa with greater local potential than existed before their arrival. The faster visa process should be seen as an accelerator of skill development, not a replacement for it.'
The owner of the job portal Pnet stated that the scheme will help employers facing labor shortages but pointed to its limited scope. The portal reported that 'the scheme is primarily designed for large employers who can demonstrate significant investment, skills development, and economic contribution.' He added that many small businesses may struggle to benefit directly from the program despite acute challenges in hiring and retaining specialized talent.
Pnet also noted that benefits may eventually extend to 'smaller enterprises competing with large companies for the same talent but unable to match their salaries, benefits packages, or career opportunities.'
The department announced that Phase 2 includes a dedicated online application process, which will eventually be integrated into a world-class Electronic Travel Authorization (ETA) platform. Schreiber stated in February that the department intends to channel all visa processing through ETA and eliminate manual processing by the end of the current administration in 2029.
In his statement, Schreiber noted: 'The launch of a larger and better TES is another marker that the department is increasingly acting as an economic catalyst, not a constraint.'
The gazette clearly defines who the scheme is not intended for: its stated goal is to simplify the processing of applications for 'senior executives, technical personnel, corporate employees, and investors.' It explicitly states that it is 'not intended for unskilled and low-wage labor.' The deadline for submitting expressions of interest is September 4, 2026, with results expected within 30 working days after that date. Successful applicants will be required to sign a memorandum of agreement with the department.
