UASA Media Release: 25 February 2026
Image source: South African Revenue Services (SARS) on X.
Statement by Abigail Moyo, spokesperson of the trade union UASA:
Amid ongoing economic challenges, high unemployment and rising living costs, today’s National Budget provides meaningful relief for workers, consumers and households across South Africa.
UASA welcomes the adjustments to key taxes, personal income tax brackets, and the withdrawal of previously proposed tax increases, including the R20 billion in additional taxes. These measures help protect workers’ incomes and purchasing power.
While these tax and fiscal changes provide relief, UASA stresses that fundamental economic renewal is urgently needed. South Africa’s economy remains under significant pressure. Projected growth of 1.6% in 2026, averaging 1.8% over the medium term and reaching 2% by 2028, is insufficient to reduce unemployment or significantly improve living standards.
UASA welcomes and strongly supports the government’s commitment to infrastructure investment exceeding R1 trillion over the medium term, directed to State Owned Entities, provinces, and municipalities. However, proposed cuts to public transport investment are concerning. Public transport is essential for millions of workers and remains a critical economic component.
The allocation of R292.8 billion to social grants, supporting over 26.5 million beneficiaries, is welcome. However, UASA believes true economic inclusion comes from job creation and a sustainable economy, not reliance on social grants. Minister Godongwana, our people need stable jobs and incomes that can sustain them.
UASA urges municipalities to make effective use of the R86.9 billion investments and deliver efficient services to the households that depend on them. We expect an end to the misuse of state funds and call for greater accountability from municipalities.
The additional R12.8 billion allocated to education and skills development is welcome. We hope this will encourage more learners to develop critical skills that support their entry into the job market.
The R21.3 billion allocated to health services to employ doctors and strengthen care is welcome. We cannot afford a struggling healthcare system while thousands of medical professionals remain unemployed. Their skills are essential for the well-being of our people.
UASA welcomes the R27.7 billion allocated to reform metro trading services, including water and electricity infrastructure. We support these reforms, especially as municipalities face significant infrastructure backlogs, such as the R64 billion water infrastructure deficit in Johannesburg. Reliable water, electricity, and transport systems are essential for economic growth and job creation.
South Africa urgently needs faster economic growth above 3% to reduce unemployment, increased investment in labour-intensive industries, stronger support for small businesses and industrial development and improved municipal capacity and infrastructure delivery.
Fiscal stability must now lead to real economic progress. Workers should not bear the burden of slow growth, rising living costs and structural economic weaknesses.
UASA will continue to closely monitor Budget implementation, advocating for policies that enhance labour engagement, support small business development and unlock the full economic potential of South Africa’s workforce.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.