1. The Department of Labour Compensation Fund and Unemployment Insurance Fund Strategic Plan 2015 – 20 Annual Performance Plan 2016 – 2017 NATIONAL COUNCIL OF PROVINCES 19 MAY 2016

2. Table of Contents 1.The DoL Programmes and Entities 2.The DoL focus in the MTSF: 2015 – 20 3.The Annual Performance Plan for the Financial Year 2016/17  Department of Labour  Compensation Fund (CF)  Unemployment Insurance Fund (UIF) 2

3. DEPARTMENT OF LABOUR The Constitutional and Policy Mandate of the Department 3

4. INTRODUCTION THE CONSTITUTIONAL MANDATE OF THE DOL Section 9, to ensure equal access to opportunities. Section 10, promotion of labour standards and fundamental rights at work. Section 18, Freedom of association. Section 23, To ensure sound Labour relations. Section 24, To ensure an environment that is not harmful to the health and wellbeing of those in the workplace. Section 27, To provide adequate social security nets to protect vulnerable workers. Section 28, To ensure that children are protected from exploitative labour practices and not required or permitted to perform work or services that are inappropriate for a person of that child’s age or their well‐being, education, physical or mental health or spiritual, moral or social development is placed at risk. Section 34, Access to courts and access to fair and speedy labour justice. 4

5. INTRODUCTION THE POLICY MANDATE OF THE DOL Improved economic efficiency and productivity. Creation of decent employment. Promoting labour standards and fundamental rights at work. Providing adequate social safety nets to protect vulnerable workers Sound labour relations. Eliminating inequality and discrimination in the workplace. Enhancing occupational health and safety awareness and compliance in the workplace. Give value to social dialogue in the formulation of sound and responsive legislation and policies to attain labour market flexibility for competitiveness of enterprises which is balanced with the promotion of decent employment 5

6. Introduction: Vision and Mission Vision The Department of Labour strives for a labour market which is conducive to investment, economic growth, employment creation and decent work. Mission Regulate the South African labour market for a sustainable economy through: -Appropriate legislation and regulations -Inspection, compliance monitoring and enforcement -Protection of human rights -Provision of Employment Services -Promoting equity -Social and income protection -Social dialogue. 6

7. Introduction: Values Values We shall at all times be exemplary in all respects: - We treat employees with care, dignity and respect - We respect and promote:  Client centred services  Accountability  Integrity and ethical behaviour  Learning and development - We live the Batho Pele Principles - We live the principles of the Department’s Service Charter - We inculcate these values through our performance management system. 7

8. DoL Programmes and Entities 1.Administration: Ministry; Deputy Minister, Director General’s Office; Corporate Services (CS), Chief Operations Officer (COO), Chief Financial Officer (CFO) 2. Inspection and Enforcement Services (IES) 3. Public Employment Services (PES) 4. Labour Market Policy & Industrial Relations (LP&IR) 5. Unemployment Insurance Fund (Schedule 3A Public Entity): UIF 6. Compensation Fund (Schedule 3A Public Entity): CF 8

9. DoL Programmes and Entities- continues Entities established in terms of various legislations and cabinet decisions to assist DOL in meeting its mandate include: Commission for Conciliation, Mediation and Arbitration (CCMA) National Economic Development and Labour Council (NEDLAC) Productivity South Africa Protected Employment Enterprises (currently trading as Sheltered Employment Factories) 9

10. DoL and MTSF Outcomes: 2015 – 20 In the Medium-term, the Department of Labour will contribute mainly to the following outcomes: Outcome 4: Decent employment through inclusive economic growth Outcome 5: A skilled and capable workforce to support an inclusive growth path Outcome 11: Create a better South Africa, a better Africa and a better World Outcome 12: An efficient, effective and development oriented public service; and Outcome 13: An inclusive and responsive social protection system Outcome 14: Transforming society and uniting the country 10

11. Government Service Delivery Outcomes and DoL Strategic Goals Strategic outcome orientated goal Goal StatementImplementing Branch Outcome 4: Decent employment through inclusive economic growth 1. Promote Occupational health services 2. Contribute to decent employment creation 3. Protect vulnerable workers 5. Strengthen occupational safety protection 6. Promote sound labour relations 7. Monitor the impact of legislation 9. Development of the Occupational Health and Safety policies IES LP&IR PES Outcome 5: A skilled and capable workforce to support an inclusive growth path 2. Contribute to decent employment creation PES 11

12. Government Service Delivery Outcomes and DoL Strategic Goals (cont.) Strategic outcome orientated goal Goal StatementImplementing Branch Outcome 11: Create a better South Africa, a better Africa and a better World 4. Strengthen multilateral and bilateral relations LP&IR Outcome 12: An efficient, effective and development oriented public service 8. Strengthen the institutional capacity of the Department Administration Outcome 13: An inclusive and responsive social protection system Strengthening social securityUIF CF Outcome 14: Transforming Society and uniting the Nation 10. Promote Equity in the labour market IES LP&IR 12

13. DoL’s Service Delivery Agreement MTSF Sub-Outcomes, Key Activities and Targets Key ActionIndicators2019 Target2014/15 Target Outcome 4: Decent employment through inclusive economic growth Sub outcome 7: Reduced workplace conflict and improved collaboration between government, organised business and organised labour Develop programmes to address workplace conflict and ensure a stronger labour relations system Measurable improvements in social partner and workplace relationships Process implemented in 3 sectors and 10 workplaces Report on progress on agreed initiatives Process piloted Progress in implementation of all elements of Presidential package relating to platinum belt Strengthen implementation of existing labour regulations to improve the protection of vulnerable workers and create decent work environment Increase in number of inspections and follow ups 30 %Cabinet approves options for strengthening the inspectorates (DOL) 13

14. DoL’s Service Delivery Agreement MTSF Sub-Outcomes, Key Activities and Targets Key ActionIndicators2019 Target2014/15 Target Outcome 4: Decent employment through inclusive economic growth Sub outcome 7: Reduced workplace conflict and improved collaboration between government, organised business and organised labour Set standards to reduce inequality in pay and minimum wages will be set for all vulnerable workers Income Differentials in pay assessed to promote the principle of Equal Pay for Work of Equal Value Gaps in minimum wage determinations covered 150 income differentials assessed 95 % 150 income differentials scales assessed in terms of Employment Equity Act (DOL) Strategies for extending minimum wage nationally submitted to Cabinet (DOL with DTI, DAFF and EDD) Strengthen collective bargaining structures and dispute settlement mechanisms The share of unprotected strikes in total strike action 50 % decreaseStrategy to improve collective bargaining submitted to Cabinet 14

15. DoL’s Service Delivery Agreement MTSF Sub-Outcomes, Key Activities and Targets Key ActionIndicators2019 Target2014/15 Target Outcome 13: An inclusive and responsive social protection system Sub-outcome 4: Deepening social assistance and expanding access to social security Improve UIF payment system 95 % of claims finalised within 3 weeks of application by 2019 Improved access to social security including social assistance Double the number of people who can access social insurance defined as UIF, (CF) COIDA and Pension and Provident Fund 15

16. DoL’s Service Delivery Agreement MTSF Sub-Outcomes, Key Activities and Targets Key ActionIndicators2019 Target2014/15 Target OUTCOME 14: Nation Building and Social Cohesion Sub- outcome 2: Equal opportunities, inclusion and redress Improve enforcement of the Employment Equity Act % of employment equity plans assessed 80 % of Employment Equity Plans assessed against indicators by 2014/15 % of middle and senior management who are African At least 40 % of middle and senior management are African by 2018/19 16

17. STRATEGIC PLAN 2015 -20 17 Administration Inspections and Enforcement Services Public Employment Services Labour Policy and Industrial Relations DEPARTMENT OF LABOUR

18. Administration 18

19. Administration Performance Indicator RPRP TargetQ1Q2Q3Q4 1.1Improve the Department’s management practice and strategic support based on the Management Performance Assessment Tool (M-PAT) assessment criteria 55% of total Department’s M- PAT standards at level 3 and 4 A55% of total Departmen t’s M-PAT standards at level 3 and 4 by March 2017 50% Implementat ion of the M- PAT Action Plan M-PAT Self- assessment report signed off by the DG and submitted to DPME by 30 September 2016 55% of total Department’s M-PAT standards at level 3 and 4 by September 2016 based on the Self-Assessment report Develop and sign-off the M-PAT Action Plan by EXCO to address challenges raised in MPAT 1.6 55% of total Department’s M- PAT standards at level 3 and 4 by March 2017 based on the final MPAT report 19

20. Administration - continues Performance IndicatorRPRP TargetQ1Q2Q3Q4 2.1Percentage of vacancy rate reduced by 31 March Q9.9%12%11%9.9% 20

21. Administration - continues Performance Indicator RPRP TargetQ1Q2Q3Q4 3.1Number of Annual Financial Statements (AFS) and Interim Financial Statements (IFS) compiled per year that comply with guidelines issued by the National Treasury Q1 AFS by 31 May, and 3 IFS 30 days after each quarter AFS – 31 May 2016 Q1 -31 July 2016 Q2 - 31 October 2016 Q3 - 31 January 2017 21

22. Administration - continues Performance IndicatorRPTargetQ1Q2Q3Q4 4.1 Percentage of compliant invoices paid within 30 days of receipt Q100% 4.2Percentage reporting of detected irregular, fruitless and wasteful and unauthorised expenditure (TR9.1.2) Q100% 22

23. DEPARTMENT OF LABOUR Inspection and Enforcement Services (IES) 23

24. Inspections and Enforcement Services (IES) Performance IndicatorRPRP TargetQ1Q2Q3Q4 1.1 Number of designated employers reviewed per year to determine compliance with employment equity legislation Q808202242162202 1.2Percentage of non- compliant employers of those reviewed in reference to 1.1 issued with a recommendation within 90 days of the review Q100% 24

25. Inspections and Enforcement Services (IES) Performance IndicatorRPRP TargetQ1Q2Q3Q4 1.3 Number of designated employers inspected per year to determine compliance with employment equity legislation Q 4 7291 1821 4199451 182 1.4.Percentage of non- complying workplaces inspected per year with reference to 1.3. dealt with in terms of the Employment Equity Act Q100% 25

26. IES - continues Performance IndicatorRPTargetQ1Q2Q3Q4 2.1 Number of workplaces inspected per year to determine compliance with labour legislation Q134 95833 74040 48726 99133 740 2.2 Percentage of non-complying workplaces inspected with reference to 2.1 per year dealt with in terms of the relevant labour legislation Q100% 2.3 Number of advocacy and educational sessions conducted per year in identified sectors Q41111 2.4. Percentage of inspections on request for work permits conducted within 5 days Q90% 2.5Percentage of non-complying workplaces inspected with reference to 2.4 per year dealt with in terms of the relevant labour legislation Q100% 26

27. IES - continues Performance IndicatorRPTargetQ1Q2Q3Q4 3.1 Number of workplaces inspected per year to determine their compliance with the OHS legislation Q21 9675 4926 5904 3935 492 3.2 Percentage of non-complying workplaces inspected with reference to 3.1 dealt with in terms of the OHS legislation Q100% 3.3 Percentage of reported incidents investigated within 90 calendar days Q62% 3.4Percentage of applications for registration of entities processed within 60 ++ calendar days Q80% 27

28. IES - continues Performance IndicatorRPTargetQ1Q2Q3Q4 3.5Amendments to the Occupational Health and Safety Act processed through the relevant structure (Cabinet) by 31 March 2017 AOHS Amendment Bill submitted to Cabinet Finalise process at NEDLAC Submit to Cabinet -OHS Amendment Bill submitted to Cabinet 28

29. IES - continues Performance IndicatorRPTargetQ1Q2Q3Q4 3.6Number of employer payroll audits conducted per year to determine employers contribution to the Unemployment Insurance Fund Q13 0163 2543 9052 6033 254 29

30. DEPARTMENT OF LABOUR Public Employment Services (PES) 30

31. Public Employment Services (PES) Performance IndicatorRPRP TargetQ1Q2Q3Q4 1.1Number of regulations and policies in terms of the Employment Services Act tabled to the ES board per year Q4 regulations tabled to the ES Board by March 2017 relating to; See detail per quarter Regulations on; registration of work seekers section 52, tabled to the ES Board Regulations on; Private Employmen t agencies, Temporary Employmen t Services section 13 and 52, tabled to the ES Board Regulations on; the procedure for employmen t of foreign nationals, section 52, tabled to the ES Board Regulations on; Provision of employmen t services by persons outside of the public administrat ion. Section 52, tabled to the ES Board 31

32. Public Employment Services (PES) Performance IndicatorRPRP TargetQ1Q2Q3Q4 1.2 Number of PES advocacy campaigns conducted per year Q 261 advocacy campaigns conducted by March 2017 807951 1.3Number of work- seekers registered on ESSA system per year Q500 000115 000135 000115 000135 000 32

33. PES - continues Performance IndicatorRPRP TargetQ1Q2Q3Q4 1.4 Number of work- seekers provided with employment counselling per year Q150 00036 00077 970106 480150 000 1.5 Number of registered employment opportunities filled by registered work seekers per year A8 0001 7503 9905 450 8 000 1.6Number of work opportunities registered on ESSA per year Q60 00013 21030 08040 77060 000 33

34. PES - continues Performance Indicator RPRP TargetQ1Q2Q3Q4 1.7 Percentage of applications from Private Employment Agencies and Temporary Employment Services processed within 60 calendar days Q 100% complete PEA and TES applications processed within 60 days of receipt 2.1 Percentage of Applications for foreign nationals corporate and individual work visa processed within 30 working days Q70% complete applications for foreign nationals corporate and individual work visa processed within 30 working days 34

35. DEPARTMENT OF LABOUR Labour Policy and Industrial Relations (LP&IR) 35

36. Labour Policy and Industrial Relations (LP&IR) Performance Indicator RPTargetQ1Q2Q3Q4 1.1Number of policy instruments developed and promoted to enhance the implementatio n of EEA by 31 March 2017 AAmended Code of Good Practice on preparation and implementati on of EE Plans developed by 31 March 2017 Draft Amended Code of Good Practice on preparation and implementati on of EE Plans published for public comment by 30 September 2016 Consolidate public comment and develop final Draft Code of Good Practice on preparation and implementatio n of EE Plans by 31 December 2016 Amended Code of Good Practice on preparation and implementati on of EE Plans developed by March 2017 36

37. Labour Policy and Industrial Relations (LP&IR) Performance Indicator RPTargetQ1Q2Q3Q4 QConduct 13 workshops on amended Code of Good Practice on Employment of Persons with Disabilities by 30 September 2016 - 37

38. LP&IR - continues Performance Indicator RPTargetQ1Q2Q3Q4 Q 2015-2016 Annual Employment Equity Report and Public Register published by 30 June 2016 - -- A2016-2017 Annual Employment Equity Report and Public Register developed by 31 March 2017 38

39. LP&IR - continues Performance Indicator RPRP TargetQ1Q2Q3Q4 2.1 Number of sectoral determinations reviewed per year 2 Review Hospitality and Taxi SDs by March 2017 ECC Hospitality and Taxi reports finalised by end April 2016 Promulgation of Hospitality and Taxi SDs by end June 2016 3.1Strengthen and monitor implementation of bilateral agreements that are in line with national priorities within set time frames Signed bilateral agreements implemented within set time frames as per their specific action plan (Lesotho, Namibia, Algeria, Mozambique, Brazil, Cuba, Germany and China) Mid-term implementatio n report submitted by 30 September 2016 Annual implementation report submitted by 30 March 2017 39

40. LP&IR - continues Performance Indicator RPRP TargetQ1Q2Q3Q4 4.1 Percentage of collective agreements extended within 90 calendar days of receipt by 31 March Q100% 4.2Percentage of labour organisation applications for registration approved or refused within 90 calendar days of receipt by end of March Q100% 40

41. LP&IR - continues Performance Indicator RPRP TargetQ1Q2Q3Q4 5.1Number of labour market trends reports produced annually A4Two annual statistical trend reports compiled and submitted by June 2016. These include: Annual Labour Market Bulletin and Job Opportunity and Unemployment in the SA labour market 2015/16 Four annual statistical trend reports approved and published by September 2016. These include: Annual Labour Market Bulletin, Job Opportunity and Unemployment in the SA labour market 2015/16, Industrial Action report 2015 and Annual Administrative Statistics report 2015 Two annual statistical trend reports compiled and submitted by March 2017. These include: Annual Administrative Statistics report 2016 and Industrial Action report 2016 41

42. LP&IR - continues Performance Indicator RPRP TargetQ1Q2Q3Q4 5.2Number of labour market research reports produced annually A4 Research reports in line with RME Agenda 4 signed off by DDG: LP&IR by 31 March 2017 Data collection instruments piloted by Q1. Data collection completed and 1 st draft report prepared 4 Final research reports submitted and signed off by DDG 42

43. IES Provincial Targets Programme Performance Indicator Annual Target ECFSGPKZNLPMPNCNWWC 1.1 Number of designated employers reviewed per year to determine compliance with employment equity legislation 808 130 30 204 62 20 70 46 40 206 1.3 Number of designated employers inspected per year to determine compliance with employment equity legislation 4 729 382 240 1,946 648 120 192 85 180 936 2.1 Number of workplaces inspected per year to determine compliance with labour legislation 134 958 16,128 10,584 30,208 29,709 12,187 9,984 5,244 8,112 12,802 3.1 Number of workplaces inspected per year to determine their compliance with the OHS legislation 21 967 2,487 2,100 5,604 4,800 1,584 820 732 1,356 2,484 3.6 Number of employer payroll audits conducted per year to determine employers contribution to the Unemployment Insurance Fund 13 016 1,160 1,188 2,328 1,680 1,284 1,356 1,176 1,224 1,620 43

44. PES Provincial Targets Programme Performance Indicator Annual TargetECFSGPKZNLPMPNCNWWC 1.2 Number of PES advocacy campaigns conducted per year 261 advocacy campaigns conducted by March 2017 332353332731152125 1.3 Number of work-seekers registered on ESSA system per year 500 000 55 000 30 000 120 000 85 000 30 000 35 000 10 000 25 000 60 000 1.4 Number of registered work-seekers provided with employment counseling per year 150 000 18 050 10 800 34 400 16 300 18 050 16 300 9 000 16 300 10 800 1.5 Number of registered opportunities filled by registered work seekers per year 8 0001 1006501 5001 4007006504005001 100 1.6 Number of work opportunities registered on ESSA per year 60 0008 4004 80011 40010 2005 4004 8003 0003 6008 400 44

45. DEPARTMENT OF LABOUR BUDGET AND MTEF ESTIMATES 45

46. The 2016 ENE baseline includes the following approved increases and decreases: 2016 Medium Term Allocations Vote 28: Labour2016/17 R’000 2017/18 R’000 2018/19 R’000 2015 Baseline2,998,2123,162,6533,346,088 Baseline Increases: 11,492 82,208 112,124 CoE: 2015 Wage settlement 11,492 47,142 74,956 CoE: National Minimum Wage Inst. 0 27,001 28,619 G&S: National Minimum Wage Inst. 0 8,065 8,549 Baseline Decreases: (161,827) (212,857) (233,994) CoE: Vacant posts & Cost containment (146,206) (197,904) (215,056) G&S: Reduced growth & Cost containment (12,621) (11,949) (16,269) Capital: Departmental Fleet (3,000) (3,004) (2,669) 2016 Baseline2,847,8773,032,0043,224,218 46

47. 2016 baseline allocations: 2016 Medium Term Allocations Programme2016/17 R’000 2017/18 R’000 2018/19 R’000 1.Administration 852,921 894,954 940,599 2. Inspection and Enforcement Services 519,494 529,833 581,770 3.Public Employment Services 510,269 571,922 594,304 4.Labour Policy and Industrial Relations 965,1931,035,2951,107,545 Vote 28: Labour2,847,8773,032,0043,224,218 Economic Classification2016/17 R’000 2017/18 R’000 2018/19 R’000 Current Payments1,714,8301,870,8681,995,251 Compensation of Employees1,132,2391,221,4871,307,915 Goods and Services 582,591 649,381 687,336 Transfer Payments1,064,6211,119,3301,184,234 Capital Assets 68,426 41,806 44,733 Vote 28: Labour2,847,8773,032,0043,224,218 47

48. 48 Change made to 2015 ENE baseline: Programme2016/17 R’000 2017/18 R’000 2018/19 R’000 1.Administration (50,918) (48,634) (57,721) 2. Inspection and Enforcement Services (67,794) (92,251) (76,396) 3.Public Employment Services (24,694) (3,506) (14,496) 4.Labour Policy and Industrial Relations (6,929) 13,742 26,743 Vote 28: Labour(150,335)(130,649)(121,870) Economic Classification2016/17 R’000 2017/18 R’000 2018/19 R’000 Current Payments(170,319)(127,645)(119,201) Compensation of Employees(157,698)(123,761)(111,481) Goods and Services (12,621) (3,884) (7,720) Transfer Payments 22,984 0 0 Capital Assets (3,000) (3,004) (2,669) Vote 28: Labour(150,335)(130,649)(121,870)

49. Public Entities of the Department of Labour 49 COMPENSATION FUND (CF)

50. COMPENSATION FUND: FOCUS AREAS Link between the CF APP and the Government’s Service Delivery Outcomes Performance Indicators and Quarterly Performance Targets per Programme Summary and Conclusion 50

51. THE COMPENSATION FUND Link between the CF APP and the Government’s Service Delivery Outcomes 51

52. 52 Service Delivery Outcomes Government Service Delivery Outcomes DOL Strategic Objectives CF Strategic Outcomes CF Strategic Objectives Outcome 4: Decent Employment through inclusive economic growth Objective (KRA 3): Protecting vulnerable workers, Strengthening of Social Security through compensating for occupational injuries and diseases Provide faster, reliable and accessible COID Services by 2020 Outcome 13: A comprehensive, responsive and sustainable social protection system KRA 5: Strengthening social protection Outcome 12: An efficient, effective and development oriented public service KRA 8: Strengthening the institutional capacity of the Department Strengthening the institutional capacity of the Fund Provide an effective and efficient client oriented support services.

53. THE COMPENSATION FUND Performance Indicators and Quarterly Performance Targets per Programme 53

54. Programme 1: Administration Item Strategic objective Key Performance Indicators Reportin g Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th Risk Management 1.1 Provide professional, efficient and client oriented support services. The Fund risk management maturity improved annually to a level by 31 March 2017 Quarterly The Fund risk manage ment maturity improved annually to level 3 by 31 March 2017 Target 1 Tested BCP strategy by 30 June 2016 Target 1 Review 1 strategic risk register by 30 September 2016 Target 1 Review 6 operational risk registers 31 December 2016 Target 1 6 Risk Monitoring reports by 31 March 2017 - Target 2 Review 6 operational risk registers by 30 September 2016 Target 2 6 Risk Monitoring Reports 31 December 2016 Target 2 1 Risk Management training for the Risk Champions by 31 March 2017 -Target 3 Review the Risk Appetite and Tolerance Framework by 30 September 2016 -- 54

55. Programme 1: Administration continues... Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th Internal Audit 1.2 Provide profession al, efficient and client oriented support services. A three-year and Annual risk-based internal audit plan approved by 31 March 2017 Annual Plan approved by the Audit Committee by March 2017 N/A A three- year and Annual risk- based internal audit plan approved by 31 March 2017 1.3 Percentage of projects on the risk based audit plan executed annually by 31 March 2017 Quarterly75% of projects on the risk based audit plan executed annually by 31 March 2017 15% cumulative projects on the risk based audit plan executed by 30 June 2016 45% cumulative projects on the risk based audit plan executed by 30 September 2016 60% cumulative projects on the risk based audit plan executed by 31 December 2016 Percentage of projects on the risk based audit plan executed annually by 31 March 2017 55

56. Programme 1: Administration continues... Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th Financial Management 1.4Provide profession al, efficient and client oriented support services. Percentage of active registered employers assessed annually by 31 March 2017 (excl exempted employers) Quarterly60 % of active registered employers assessed annually 40% of the annual target by 30 June 2016 achieved 75% of the annual target by 30 September 2016 achieved 85% of the annual target by 31 December 2016 achieved 100% of the annual target by 31 March 2017 achieved 56

57. Programme 1: Administration continues... Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th Financial Management 1.5Provide profession al, efficient and client oriented support services. Percentage annual increase on investment income by 31 March of the current financial year compared to the previous financial year AnnualInvestment growth at a rate of CPI+2% annually ---Investment growth at a rate of CPI+2% by 31 March 2017 57

58. Programme 1: Administration continues... Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th Financial Management 1.6 Provide profession al, efficient and client oriented support services. No of findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March 2017 Quarterly 78 findings affecting the AGSA audit report as at 31 March 2015 cleared annually by 31 March 2017 19 findings cleared by 30 June 2016 19 findings cleared by 30 Septemb er 2016 19 findings cleared by 31 December 2016 21 findings cleared by 31 March 2017 1.7Percentage of findings affecting the AGSA audit report as at 31 March 2016 cleared annually by 31 March 2017 Quarterly40% of the findings affecting the AGSA audit report as 31 March 2016 cleared by 31 March 2017 - 25% of the annual target by 30 Septemb er 2016 25% of the annual target by 31 December 2016 50% of the annual target by 31 March 2017 58

59. Programme 1: Administration continues... Item Strategic objective Key Performance Indicators Reportin g Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th Human Resource Management 1.8Provide profession al, efficient and client oriented support services. Percentage of vacancies at CF Head Office maintained annually Quarterly10% of vacancies at CF Head Office maintaine d by 31 March 2017 10% of vacancies at CF Head Office maintained by 30 June 2016 10% of vacancies at CF Head Office maintained by 30 September 2016 10% of vacancies at CF Head Office maintained by 31 December 2016 10% of vacancies at CF Head Office maintained by 31 March 2017 59

60. Programme 2: Operations Management Item Strategic Objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 2.1Provide faster, reliable and accessible COID Services by 2020 Percentage of Authorised claims paid within 5 working days Quarterly100% of authorised claims paid within 5 working days yearly 100% of authorised claims paid within 5 working days 60

61. Programme 2: Operations Management continues... Item Strategic Objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 2.2 Provide faster, reliable and accessible COID Services by 2020 Reviewed Compensation benefits for annual adjustments QuarterlyAnnual review and approval of compensatio n benefits for adjustments by March 2017 Review preliminary actuarial report by 30 th June 2016. Final Compensation benefit submission tabled for approval by the CF Board by 30 September 2016 Submission of the final proposal to the Minister by 31 December 2016 Publishing of the approved compensation benefits in the Government Gazette by 31 March 2017 61

62. Programme 2: Operations Management continues... Item Strategic Objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 2.3Provide faster, reliable and accessibl e COID Services by 2020 Reviewed medical Tariffs for annual adjustments QuarterlyAnnual review and approval of medical tariffs for annual adjustment by March 2017 Preliminar y report from the actuaries by 30 June 2016 Consultations with medical stakeholders by 30 September 2016 Final medical tariffs submission tabled for approval by the CF Board by 31 December 2016 Publishing approved medical tariffs in the Government Gazette by 31 March 2017 62

63. Programme 2: Operations Management continues... Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 2.4 Provide faster, reliable and accessible COID Services by 2020 Annual improvement in the administratio n of chronic medication distribution QuarterlyChronic medication distribution programme to beneficiaries implemente d by March 2017 Source distributor for chronic medication by 30 September 2016 Implement phase 1 (Piloted Provinces) of the distribution of the chronic medication by 31 December 2016 Implement phase 2 (Full roll- out) of the distribution of the chronic medication by 31 March 2017 1 progress report on the project implementa tion by 31 March 2017 63

64. Programme 2: Operations Management continues... Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 2.5Provide faster, reliable and accessible COID Services by 2020 Annual improvement in the management of litigation cases, hearings and objections QuarterlyElectronic case management system implemented by March 2017 - Source the Electronic case management system by 30 September 2016 Implement the Electronic case management system by 31 December 2016 1 progress report on the project implementation by 31 March 2017 64

65. Programme 3: Provincial Operations Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 3.1 Provide faster, reliable and accessible COID Services by 2020 Percentage of the registered claims adjudicated in the current financial year Quarterly 85% of the registered claims adjudicated in the current financial year 85% of the registered claims adjudicated by 30 June 2016 85% of the registered claims adjudicated by 30 September 2016 85% of the registered claims adjudicated by 31 December 2016 85% of the registered claims adjudicated by 31 March 2017 3.2Percentage of received compensatio n benefit claims finalised in the current financial year Quarterly85% of received compensatio n benefits claims finalised in the current financial year 85% of received compensati on claims benefits finalised by 30 June 2016 85% of received compensati on claims benefits finalised by 30 September 2016 85% of received compensati on claims benefits finalised by 31 December 2016 85% of received compensati on claims benefits finalised by 31 March 2017 65

66. Programme 3: Provincial Operations continues….. Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 3.3 Provide faster, reliable and accessibl e COID Services by 2020 Percentage of approved medical invoices for payment in the current financial year Quarterl y 85% of finalised medical invoices in the current financial year 85% of finalised medical invoices by 30 June 2016 85% of finalised medical invoices by 30 September 2016 85% of finalised medical invoices by 31 December 2016 85% of finalised medical invoices by 31 March 2017 3.4Percentage of registered compensatio n claims adjudicated within 60 working days Quarterly85% of registered compensati on claims adjudicated within 60 working days 85% of registered compensation claims adjudicated with 60 working days 66

67. Programme 3: Provincial Operations continues….. Item Strategic objective Key Performance Indicators Reporting Period Annual Target 2016/17 Quarterly Targets 1st2nd3rd4 th 3.5Provide faster, reliable and accessible COID Services by 2020 Percentage of medical claims finalised within 60 working days of receiving invoice Quarterly85% of medical claims finalised within 60 working days of receiving invoice 67

68. THE COMPENSATION FUND Budget for the Financial Year 2016/17 68

69. 2016 baseline allocations: 2016 Medium Term Allocations 69

70. 2016/17 Baseline allocations: 2016 Medium Term Allocations Economic Classification2016/17 R’000 2017/18 R’000 2018/19 R’000 Current Payments 1 077 826 1 152 909 1 230 374 Compensation of Employees 512 589 552 628 594 076 Goods and Services 565 237 600 281 636 298 Transfer Payments 4 085 961 4 339 291 4 599 648 Capital Assets 12 700 13 487 14 297 Total Allocation 5 176 487 5 501 530 5 839 849 70

71. Expenditure Budget 2016-17 71

72. Approved Revenue Budget 2016-17 72

73. Administrative Budget Per Programme 73

74. Compensation of Employees Budget 74

75. Public Entities of the Department of Labour 75 UNEMPLOYMENT INSURANCE FUND (UIF)

76. UNEMPLOYMENT INSURANCE FUND: FOCUS AREAS SERVICE DELIVERY OUTCOMES AND STRATEGIC GOALS UNEMPLOYMENT INSURANCE FUND STRATEGIC PLAN UNEMPLOYMENT INSURANCE FUND ANNUAL PERFORMANCE PLAN OVERVIEW OF THE 2016/17 BUDGET AND MTEF ESTIMATES 2016/17 BUDGET BENEFITS PAYMENTS BREAK DOWN JOB CREATION IMPACT ANTICPATED JOB LAY OFF SCHEME IMPACT 76

77. UNEMPLOYMENT INSURANCE FUND Link between the UIF APP and the Government’s Service Delivery Outcomes 77

78. Service Delivery Outcomes And Strategic Goals In the medium term, the UNEMPLOYMENT INSURANCE Fund will contribute mainly on the following outcomes: Outcome 4: Decent employment through an inclusive economic growth; and Outcome 12: An efficient, effective and development oriented public service and an empowered and inclusive citizenship. Outcome 13: An inclusive and responsive social protection system The Fund will contribute mainly to the following strategic objectives of the Department of Labour: Contribute to decent employment creation(DOL strategic objective 1, Outcome 4) Strengthening social protection(DOL strategic objective 5, Outcome 13) Strengthening institutional capacity of the Department of labour (DOL strategic objective 8, Outcome 12) Unemployment Insurance Fund’s strategic objectives Improve financial management DOL strategic objective 8, Outcome 12); Improve service delivery(DOL strategic objective 5, Outcome 13); Improve compliance(DOL strategic objective 3 & 5, Outcome 13); Fund poverty alleviation schemes(DOL strategic objective 1, Outcome 4) 78

79. UNEMPLOYMENT INSURANCE FUND STRATEGIC PLAN 2016 -21 79

80. 80 Unemployment Insurance Fund Strategic Plan PROGRAMME 1: ADMINISTRATION Purpose: provide management, strategic and administrative support services to the Fund. Strategic Objective 1: Improve financial management OUTPUT KEY PERFORMANCE INDICATORS Target 2016/17 Target 2017/18 Target 2018/19 Target 2019/20 Target 2020/21 Sound financial management Percentage return on investment CPI + 2.5% Return on investment by end March 2017 CPI + 2.5% Return on investment by end March 2018 CPI + 2.5% Return on investment by end March 2019 CPI + 2.5% Return on investment by end March 2020 CPI + 2.5% Return on investment by end March 2021 Administrative expenditure (excluding capex) as a percentage of revenue Administrative expenditure ≤ 15% by March 2017 Administrative expenditure ≤ 15% by March 2018 Administrative expenditure ≤ 15% by March 2019 Administrative expenditure ≤ 15% by March 2020 Administrative expenditure ≤ 15% by March 2021 Social responsible investment Percentage of total mandated Social Responsible Investment committed 80% by March 2017. (total investment as at beginning of financial year) 80% by March 2018. (total investment as at beginning of financial year) 80% by March 2019. (total investment as at beginning of financial year) 80% by March 2020. (total investment as at beginning of financial year) 80% by March 2021. (total investment as at beginning of financial year)

81. 81 Unemployment Insurance Fund Strategic Plan Programme 2: Business operations Purpose: To collect contributions and pay benefits. Strategic Objective 2: Improve Service Delivery OUTPUT KEY PERFORMANCE INDICATORS Target 2016/17 Target 2017/18 Target 2018/19 Target 2019/20 Target 2020/21 Improved Client Service Percentage of valid claims with complete information approved or rejected. (as per the Fund’s operational system SIYAYA) per year. 90% within 5 weeks by March 2017 90% within 4 weeks by March 2018 90% within 3 weeks by March 2019 90% within 3 weeks by March 2020 95% within 2 weeks by March 2021 Technology to improve service delivery implemented Number of claims submitted through U-Filing claims portal per year. 20 000 by March 2017 30 000 by March 2018. 40 000 by March 2019. 40 000 by March 2020. 40 000 by March 2021.

82. 82 Unemployment Insurance Fund Strategic Plan Programme 2: Business operations Purpose: To collect contributions and pay benefits. Strategic Objective 3: Improve compliance to the Unemployment Insurance Acts OUTPUT KEY PERFORMANCE INDICATORS Target 2016/17 Target 2017/18 Target 2018/19 Target 2019/20 Target 2020/21 Improved compliance Increase in the number of newly registered employers per year. 55 000 by March 2017 60 000 by March 2018 65 000 by March 2019 70 000 by March 2020 75 000 by March 2021 Percentage increase in revenue per year 7.5% by March 2017 7.2% by March 2018 6.9% by March 2019 6% by March 2020 6% by March 2021

83. 83 Unemployment Insurance Fund Strategic Plan Programme 2: Business operations Purpose: To collect contributions and pay benefits. Strategic Objective 3: Improve compliance to the Unemployment Insurance Acts OUTPUT KEY PERFORMANCE INDICATORS Target 2016/17 Target 2017/18 Target 2018/19 Target 2019/20 Target 2020/21 Improved compliance Percentage reduction in Overpayment balance. (Opening Balance plus new overpayments noted less write offs and cancellations). 20% by March 2017 20% by March 2018 20% by March 2019 25% by March 2020 25% by March 2021 Increase in number of employers using u-filing system per year. 17 000 by March 2017 18 000 by March 2018 20 000 by March 2019 25 000 by March 2020 30 000 by March 2021

84. 84 Unemployment Insurance Fund Strategic Plan Programme 3: Labour Activation Programmes Purpose: To provide active labour market programmes Strategic Objective 4: Fund Poverty Alleviation Schemes OUTPUT KEY PERFORMANCE INDICATORS Target 2016/17 Target 2017/18 Target 2018/19 Target 2019/20 Target 2020/21 Social plan funded. Percentage of budgeted funds transferred for turnaround solutions implementation by PSA per year. 80% by March 2017. 80% by March 2018. 85% by March 2019. 85% by March 2020. 85% by March 2021. Turnaround time to approve or reject a Training Layoff Scheme application received from the SETA per year. 30 days by March 2017. 30 days by March 2018. 30 days by March 2019. 30 days by March 2020. 30 days by March 2021.

85. 85 Unemployment Insurance Fund Strategic Plan Programme 3: Labour Activation Programmes Purpose: To provide active labour market programmes Strategic Objective 4: Fund Poverty Alleviation Schemes OUTPUT KEY PERFORMANCE INDICATORS Target 2016/17 Target 2017/18 Target 2018/19 Target 2019/20 Target 2020/21 Social plan funded. Turnaround time to transfer funds to a SETA after the approval of a Training Layoff Scheme application. 30 days by March 2017. 30 days by March 2018. 30 days by March 2019. 30 days by March 2020. 30 days by March 2021.

86. UNEMPLOYMENT INSURANCE FUND Performance Indicators and Quarterly Performance Targets per Programme 86

87. 87 Unemployment Insurance Fund: Administration PROGRAMME 1: ADMINISTRATION Purpose: provide management, strategic and administrative support services to the Fund. Strategic objective 1: Improve financial management OUTPUT KEY PERFORMANCE INDICATORS ANNUAL TARGET Q1Q2Q3Q4 Sound financial management Percentage return on investment per year CPI + 2.5% return on investments by March 2017. N/A CPI + 2.5% return on investments by March 2017. Administrative expenditure (excluding capex) as a percentage of revenue per year Administrative expenditure ≤ 15% by March 2017 N/A Administrativ e expenditure ≤ 15% by March 2017 Social responsible investment Percentage of total mandated Social Responsible Investment committed per year 80% by March 2017. (total investments as at beginning of financial year) 20% by June 2016 40% by September 2016 60% by December 2016 80% by March 2017

88. 88 Unemployment Insurance Fund: Business Operations Programme 2: Business operations Purpose: To collect contributions and pay benefits. Strategic Objective 2: Improve Service Delivery OUTPUT KEY PERFORMANCE INDICATORS ANNUAL TARGET Q1Q2Q3Q4 Improved Client Service Percentage of valid claims with complete information approved or rejected (as per the Fund’s operational system SIYAYA) per year. 90% within 5 weeks by March 2017 90% within 5 weeks by June 2016 90% within 5 weeks by September 2016 90% within 5 weeks December 2016 90% within 5 weeks by March 2017 Technology to improve service delivery implemented Number of claims submitted through U-Filing claims portal per year. 20 000 by March 2017. 5 000 by June 2016. 10 000 by September 2016. 15 000 by December 2016. 20 000 by March 2017.

89. 89 Unemployment Insurance Fund: Business Operations Programme 2: Business operations Purpose: To collect contributions and pay benefits. Strategic Objective 3: Improve compliance to the Unemployment Insurance Acts OUTPUT KEY PERFORMANCE INDICATORS ANNUAL TARGET Q1Q2Q3Q4 Improved compliance Increase in the number of newly registered employers per year 55 000 by March 2017 13 750 by June 2016. 27 500 by September 2016. 41 250 by December 2016. 55 000 by March 2017. Percentage increase in revenue per year 7.5% by March 2017 1.875% by June 2016 3.755% by September 2016 5.625 % by December 2016 7.5 % by March 2017 Percentage reduction in Overpayment balance per year.(Opening Balance plus new overpayments noted less write offs and cancellations). 20% by March 2017 5% by June 2016 10% by September 2016 15% December 2016 20% by March 2017

90. 90 Unemployment Insurance Fund: Business Operations Programme 2: Business operations Purpose: To collect contributions and pay benefits. Strategic Objective 2: Improve Service Delivery OUTPUT KEY PERFORMANCE INDICATORS ANNUAL TARGET Q1Q2Q3Q4 Increase in number of employers using U-filing system per year 17 000 by March 2017 4 250 by June 2016 8 500 by September 2016 12 750 system by December 2016 17 000 March 2017

91. 91 Unemployment Insurance Fund: Labour Activation Programmes Programme 3: Labour Activation Programmes Purpose: To provide active labour market programmes Strategic Objective 4: Fund Poverty Alleviation Schemes OUTPUT KEY PERFORMANCE INDICATORS ANNUAL TARGET Q1Q2Q3Q4 Social plan funded. Percentage of budgeted funds transferred for turnaround solutions implementation by PSA per year. 80% of budgeted funds transferred by 31 March 2017 20% by 30 June 2016 40% by 30 September 2016 60% by 31 December 2016 80% by March 2017

92. 92 Unemployment Insurance Fund: Labour Activation Programmes Programme 3: Labour Activation Programmes Purpose: To provide active labour market programmes Strategic Objective 4: Fund Poverty Alleviation Schemes OUTPUT KEY PERFORMANCE INDICATORS ANNUAL TARGET Q1Q2Q3Q4 Social plan funded. Turnaround time to approve or reject a Training Layoff Scheme application received from the SETA per year. Within 30 days after receipt of application. N/A Within 30 days after receipt of application.

93. 93 Unemployment Insurance Fund: Labour Activation Programmes Programme 3: Labour Activation Programmes Purpose: To provide active labour market programmes Strategic Objective 4: Fund Poverty Alleviation Schemes OUTPUT KEY PERFORMANCE INDICATORS ANNUAL TARGET Q1Q2Q3Q4 Social plan funded. Turnaround time to transfer funds to a SETA after the approval of a Training Layoff Scheme application. Within 30 days after approval of application. N/A Within 30 days after approval of application.

94. UNEMPLOYMENT INSURANCE FUND BUDGET AND MTEF ESTIMATES 94

95. 2016/17 Administration Budget and MTEF Estimates PROGRAMMES:2015/2016 R’000 2016/2017 R’000 2017/2018 R’000 2018/2019 R’000 Programme 1: Administration1,042,6331, 013,396957,8811,013,438 Strategic Objective: - Improve financial management 1,042,6331, 013,396957,8811,013,438 Programme 2: Business Operations 1,207,1621,434,3291,537,8091,626,992 Strategic Objective: -improve service delivery 353,671381,868407,842431,492 -Improve compliance to Unemployment Insurance Act 853,4911,052,4611,129,9671,195,500 Programme 3: Labour Activation Programmes 3,7585,3195,6285,954 Strategic Objective: Fund poverty alleviation schemes 3,7585,3195,6285,954 Grand total Programmes2, 253,5532,453,0452,501,3182,646,384 95

96. 2016/17 Budget Benefits Payments Break Down BENEFITSORIGINAL BUDGET 2015/2016 R’000 REVISED BUDGET 2015/2016 R’000 2016/2017 R’000 2017/2018 R’000 2018/2019 R’000 Total Benefits 7,949,3228,536,5929,220,7089,840,51610,486,523 Unemployment6,197,2586,655,1817,188,5227,671,7288,175,360 Illness 330,976 355,280 383,752 409,547 436,433 Maternity1,001,6721,076,6991,161,9051,240,0081,321,411 Adoption 1,044 1,125 1,215 1,297 1,382 Dependents 418,372 449,307 485,314 517,936 551,937 As required in terms of Section 9 of the Unemployment Insurance Act no. 63 of 2001, an actuarial valuation of the Fund was conducted and the budget for Benefits expenditure has been set as determined within the valuation. Due to the current decline in the country’s economy, he Fund has budgeted an additional 12% to the estimated benefit payment expenditure. The year to date calculations resulted in a percentage increase of 10.31% whereas the calculations with regards o the current run-rate resulted in a 12.95% increase. To be prudent the budget for Benefit payment was adjusted with 12 % annually to reflect the anticipated increase in benefits payments for 2015/16 revised budget and 2016/17 to 2018/19 MTEF budget. Expenditure is monitored and will be revised once the Unemployment Insurance amendment Bill implementation date is certain. 96

97. MTEF 2016 Budget Overview: Technical Reserves & LAP 97 Technical Reserves Approved Revised 2015/2016 2016/20172017/20182018/2019 Growth R’000 2015/16 - 2016/17 Technical Reserves 1,511,3401,599,4051,767,7011,924,5025.8% Labour Activations Programmes (LAP) Approved Revised 2015/2016 2016/20172017/20182018/2019 Growth R’000 2015/16 - 2016/17 Training Lay-off Schemes and Social Plan Funding 1,627,2001,948,4001,585,0211,624,90819.7% Training of the unemployed 400,000500,000529,000559,68225.0% Unemployment alleviation schemes 1,227,2001,448,4001,056,0211,065,22618.0%

98. UNEMPLOYMENT INSURANCE FUND TRAINING LAYOFFS SCHEME AND JOB CREATION IMPACT 98

99. Job Creation Impact Anticipated To focus on the following:  Provision of turnaround solutions  Training lay-off schemes Impact  Job savings  Improvement of efficiency and productivity in companies  Poverty reduction 99

100. Job Creation Impact Anticipated Partnership : PIC and IDC (government agencies, private initiatives in unlisted sphere).  Developmental Responsibility Investment mandate  Social responsible investment  Investment Portfolio  Different investment instruments  Diversified asset allocation in Domestic markets Impact:  Create and retain max number of sustainable jobs  Across industrials sectors  All Provinces 100

101. Job Creation Impact as at 10 March 2016 PROGRAMMES:As at 09 November 2016 As at March 2016Percentage change Number of deals258257(0.4%) Value deals (Billions)R3.99R3.97(0.5%) Jobs created33 72233 769(0.1%) Jobs saved20 87720 800(0.4%) 101

102. Job Lay Off Scheme Impact Poverty alleviation schemes focusing on the following:  Training in partnership with SETAs, Institutions of Higher Learning, State Owned Entities and Private Sector.  Enterprise development program in partnership with Development Financial Institutions and Private sector Impact:  Up-skilling of unemployed UIF beneficiaries so that they get better chances of being re-employed  Contribution to critical and scarce skills  Alleviating poverty through stipends whilst on training  Improving access to bursaries by referring beneficiaries to government educational institutions funded by UIF  Linking skilled entrepreneurs to markets  Linking skilled entrepreneurs to Development Financial Institutions 102

103. Thank You… 103