iej-policy-brief-ubig_2-fde2987f0265ac95.pdf

This policy brief by the Institute for Economic Justice (IEJ) advocates for the implementation of a Universal Basic Income Guarantee (UBIG) for adults aged 18-59 in South Africa to combat poverty and hunger. The IEJ recommends an immediate increase of the COVID-19 grant to R585 per month and a short-term transition to a universal grant funded by R158 billion in proposed progressive tax measures, including a Social Security Tax and a future wealth tax. The brief argues that universality is more administratively efficient and socially just than means-testing, aligning with South Africa's constitutional obligations to provide social security.

• The Institute for Economic Justice (IEJ) recommends the immediate extension of the COVID-19 grant until the end of the 2021/22 financial year, with its level increased to the food poverty line of R585 per month and the removal of exclusionary criteria.
• The IEJ proposes a short-term implementation of a UBIG for all adults at the food poverty line of R585 per month, which would cost R157 billion per annum if targeted at those not formally employed, or R239 billion for all adults aged 18-59.
• To finance the UBIG, the IEJ identifies R158 billion in potential additional tax revenue from twelve progressive measures, including a Social Security Tax (SST), the elimination of certain tax credits, and a luxury VAT of 25% on select items.
• The proposed Social Security Tax (SST) would be a progressive tax on income ranging from 1.5% to 3% of taxable personal income, estimated to collect R64.7 billion annually.
• The IEJ suggests a medium-term implementation of a wealth tax on high-wealth individuals, estimating that a 1% tax on the top 1% of earners could raise R63 billion, while a 3% tax on the top 0.1% could raise R103 billion.
• The document argues that a universal, unconditional grant is superior to targeted grants because it avoids the administrative inefficiencies and exclusionary errors associated with means-testing, as seen in the rollout of the COVID-19 grant.
• The IEJ notes that approximately 70% of adults aged 18-64 in South Africa live below the upper bound poverty line (UBPL) of R1,265 per person per month, and 40% live below the World Bank's $1.90 a day (R436pm) measure.
• The brief highlights a significant gap in the current social assistance system, which primarily covers children (via the Child Support Grant) and those aged 60 and above (via the Older Persons Grant), leaving most able-bodied adults aged 18-59 unprotected.
• The IEJ estimates that increasing the COVID-19 grant and the Caregiver's Allowance to R585 per month would save approximately 6.8 million people from hunger.

APA

Institute for Economic Justice (n.d.). iej-policy-brief-ubig_2-fde2987f0265ac95.pdf. https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-UBIG_2.pdf

Chicago

Institute for Economic Justice. iej-policy-brief-ubig_2-fde2987f0265ac95.pdf. n.d. https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-UBIG_2.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=iej-policy-brief-ubig_2-fde2987f0265ac95.pdf |url=https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-UBIG_2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjusticendiejpolicybriefubig2fde2987f0265ac95pdf, author = {{Institute for Economic Justice}}, title = {{iej-policy-brief-ubig\_2-fde2987f0265ac95.pdf}}, institution = {Institute for Economic Justice}, url = {https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-UBIG_2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }