South Africa

Old Age, Disability, Death

First laws: 1928 (old age), 1936 (blindness), and 1946 (disability).
Current law: 1992 (as amended through 1997).
Type of program: Social assistance system.
Exchange rate: U.S.$1.00 equals 5.73 rand.

Coverage

Citizens of limited means. Special system for public employees.

Source of Funds

Insured person: None.
Employer: None.
Government: Entire cost.

Qualifying Conditions

Old-age pension: Age 65 (men) or 60 (women).
War veterans grant: Age 60. Veterans of specific wars.
Residency requirements: Must be a citizen and resident in the Republic at the time of application.
Disability grant: Incapacity for adequate self-support for more than 6 months, payable at age 18. Suffering from terminal disease, payable at age 35.
Residency requirements: Same as old-age pension.

Old-Age Benefits

Old-age pension (after means test): Up to 500 rand a month.
Married couples may receive double the amount. Additional 90 rand a month for frail and chronically ill who require full-time care.
War veterans grant: Up to 518 rand a month. Additional 90 rand a month for frail and chronically ill who require full-time care.

Permanent Disability Benefits

Disability grant (after means test): Up to 500 rand a month. Married couples may receive double the amount. Additional 90 rand a month for frail and chronically ill who require full-time care.

Administrative Organization

National and provincial departments of Welfare, administration of social assistance.

Sickness and Maternity

Cash sickness and maternity: Benefits payable under unemployment insurance to qualified insured workers.

Coverage

Sickness and maternity benefits: Same as Unemployment, below.
Medical benefits: Old-age and disability pensioners.

Source of Funds

Cash sickness and maternity benefits: Financed from unemployment contributions.
Medical benefits: Financed from pension contributions.

Qualifying Conditions

Cash sickness benefits: 13 weeks' contribution during 52 weeks preceding illness, unemployed or drawing no more than 1/3 regular wage.
Cash maternity benefits: 13 weeks' contribution during 52 weeks preceding confinement, unemployed or earning no more than 1/3 regular wage. (For adoption, 18 weeks' contribution during 52 weeks preceding adoption.)

Sickness and Maternity Benefits

Sickness benefit: 45% of weekly earnings. Payable for 26 weeks after 4-6-week waiting period.
Maternity benefit: 45% of weekly earnings, payable up to 18 weeks preceding confinement and 8 weeks following birth.

Workers' Medical Benefits

Medical benefits: All pensioners entitled to subsidized medical care, including hospitalization and medication, at provincial hospitals.

Administrative Organization

See Unemployment below.

Work Injury

First law: 1914.
Current law: 1993.
Type of program: Compulsory insurance with public carrier.

Coverage

Employed persons except domestic servants in private households, some contract workers and some military personnel.

Source of Funds

Insured person: None.
Employer: Whole cost, through insurance premiums varying with risk.
Government: Government employees only.

Qualifying Conditions

Work-injury benefits: No minimum qualifying period for payments but more than 3 days incapacity required to qualify for temporary disability benefits.
Occupational disease benefits: For 26 listed (plus some unlisted)
diseases, date of diagnosis considered to be date of disease onset.

Temporary Disability Benefits

Temporary disability benefit: Total disability: 75% of earnings up to 8,086.42 rand a month payable up to 12 months, subject to further evaluation.
Partial disability: Proportion of earnings as determined by Commissioner, payable up to 12 months, subject to further evaluation.

Permanent Disability Benefits

Permanent disability pension: Total disability: 75% of earnings up to 8,086.42 rand a month.
Partial disability: Percentage of full benefit proportionate to degree of disability. For 30% or less disability, lump sum of 15 times monthly earnings up to 67,950 rand maximum. For disability greater than 30%, benefit paid in form of monthly pension.

Workers' Medical Benefits

Medical benefits: Medical, surgical, and hospital care, and appliances. Provided for maximum of 2 years (may be extended in special cases).

Survivor Benefits

Survivor pension: 40% of pension of deceased, based on permanent total disability pension equivalent, plus lump-sum payment of 12,129 rand. Payable to widow or to disabled widower.
Orphans: 20% of pension of deceased, based on permanent total disability pension equivalent, for each orphan under age 18 (no limit if disabled).
Maximum survivor pension: 100% of pension of deceased.
Funeral grant: The lesser of 5,350 rand or actual cost, at the Commissioner's discretion.

Administrative Organization

Department of Labor: Human Resources, general supervision.
Compensation Commissioner's Office, administration of program, including decision of claims and management of funds from which benefits paid.
Employers must normally insure liability with public Compensation Fund, but in certain instances may insure with employer mutual associations licensed by the Minister of Labor. Government and some local authorities are individually liable.

Unemployment

First law: 1937.
Current law: 1966 (as amended through 1994).
Type of program: Compulsory insurance system.

Coverage

Employees earning 88,920 rand a year or less.
Exclusions: Domestic servants, homeworkers, family labor, workers employed for less than 8 hours a week, seasonal workers and some government employees.

Source of Funds

Insured person: 1.0% of earnings.
Employer: 1.0% of insured's earnings, including payment in kind.
Government: 25% of total employee and employer contributions up to maximum of 7 million rand a year.
Unemployment contributions also finance the sickness, maternity and adoption programs.

Qualifying Conditions

Unemployment benefits: 13 weeks of contribution during last 52 weeks. Capable of and available for work. Registration and required reporting at public employment exchange, unless unemployment due to illness or pregnancy. Unemployment not due to participation in strike, or refusal of suitable work and training.
Survivor: Benefit paid to widow, widower or children less than 17 years (over 17 if disabled) if deceased had contributed 13 weeks during 5 years immediately preceding death. Must apply within 36 months following death of insured.

Unemployment Benefits

Unemployment benefit: 45% of weekly earnings.
Payable after 7-day waiting period for up to 26 weeks in any 52 weeks but no longer than 1/6 of weeks of contribution.
Survivor: Same payment as unemployment benefit for up to 26 weeks.

Administrative Organization

Department of Labor, general supervision.
Unemployment Insurance Fund, administration of program; managed through bipartite board, local unemployment benefit committees, and claims officers.

Family Allowances

Current Law: Social Assistance Act of 1992 as amended in 1997.
Type of program: Social Assistance.

Coverage

Low income persons caring for children under age 18.

Source of Funds

Insured person: None.
Employer: None.
Government: Entire cost.

Qualifying Conditions

All family allowance benefits are means tested.
Foster child grant: Court ordered custody of child.
Maintenance grant: Parent unable to care for children without assistance. (Program being phased out during next several years.)
Child-support grant: Primary care-giver of child or children from 1 to 6 years.
Care-dependency grant: Parent or foster parent of child between 1 and 18 years who requires permanent home care because of severe mental or physical disability.

Family Allowance Benefits

Foster child grant (after means test): Up to 340 rand a month.
Maintenance grant (after means test): Up to 430 rand a month for one parent plus 135 rand a month per child for up to 2 children (maximum family allowance 700 rand).
Child-support grant (after means test): Up to 100 rand a month per child for up to 6 children.
Care-dependency grant (after means test): Up to 500 rand a month.

Administrative Organization

National and provincial departments of Welfare, administration of social assistance.