SONA 2026, from an Employer Perspective

The 2026 SONA is, overall, a win for employers. It pushes the labour market toward skills, youth employment, and SME growth, while making it riskier to ignore compliance and ethics.

Youth employment gets a real boost. Simplifying participation in the Youth Employment Service (YES) cuts red tape and makes it easier to bring in young people on subsidised or supported terms. Expanded public employment programmes won’t all be private‑sector jobs, but they will stabilise communities, support basic services, and produce more work‑ready entrants who are easier and cheaper to integrate into your workforce.

The biggest shift for many employers is on skills funding. The Skills Development Levy refund is being increased so that up to 40% of what you pay in can be returned to you if you invest in approved training and workplace learning. That change, combined with a dual training model and reformed SETAs, turns the levy from a grudging payroll tax into a co‑funding mechanism for your own learnerships, apprenticeships, and internships.

Add in a more agile, outcomes‑driven National Skills Fund and better‑financed student accommodation, and you get a deeper pipeline of candidates who are qualified, more job‑ready, and partly funded.

On the risk side, the hiring of 10,000 extra labour inspectors and a robust Whistle‑Blower Protection Bill will significantly raise scrutiny. Labour, immigration, health and safety, and general employment practices are more likely to be checked, and internal misconduct is more likely to be reported and protected.

For employers already playing by the rules, this levels the competitive field and cleans up supply chains. For those cutting corners, it raises the odds of fines, litigation, and reputational damage.

SMEs and supply chains also stand to gain. Easier, cheaper credit under amended National Credit Act regulations, plus R2.5 billion in direct SME funding and R1 billion in guarantees, will strengthen smaller firms and open space for new, especially women‑ and youth‑led suppliers. Public‑sector disability and procurement targets point towards an environment where inclusive hiring and empowered suppliers become commercially advantageous, not just compliance tick‑boxes.

Put simply, this SONA tells employers: if you invest in skills, youth, inclusion, and clean governance, the state will return more of your levy, lower your talent costs, and support your suppliers. If you cling to low‑compliance, low‑skill models, the new enforcement and whistle‑blower regime will steadily squeeze that approach out.

The Annual Employment Conference #AEC2026 brings together South Africa’s leading labour, HR, and employment-relations experts for a deep dive into the most urgent challenges facing employers in a changing world of work.

2026's conference promises to unpack the economic, technological, and legislative forces reshaping the workplace, offering practical insights on navigating organisational change, managing workforce risks, strengthening compliance, and preparing for the next wave of policy reform. Delegates will gain forward-looking guidance from top practitioners, case-based analysis of emerging employment trends, and strategic tools to build resilient, future-ready workplaces. Register now: https://www.globalbusiness.co.za/gbs-event-details/annual-employment-conference-2026

View our upcoming events: Upcoming Events and Qualifications, like Annual Employment Conference 2026 (#AEC2026), Master Employment Equity in 2026, COID Amendment Update, How to conduct a Disciplinary Enquiry, Higher Occupational Certificate: HRM Administrator NQF5, and Advanced Occupational Certificate: HRM Officer (NQF 6).

*All workshops are offered as customised in-house training that can be presented virtually or on-site.