The South African government has formally approved the National Labour Migration Policy (NLMP) 2025 White Paper, marking a significant shift in the regulation of foreign nationals’ employment. This new policy, passed by Cabinet in May 2025, seeks to address South Africa’s high unemployment rate, which currently hovers above 30%, with youth unemployment nearing 60%, by prioritising local job opportunities.
The approval of the NLMP follows extensive public debate on the role of foreign workers in South Africa’s labour market. Minister in The Presidency, Khumbudzo Ntshavheni, during a post-Cabinet briefing, stressed the policy as a necessary intervention to ensure the orderly employment of foreign nationals while prioritising South African citizens for job opportunities. This policy shift comes amid heightened concerns that foreign workers have been contributing to limiting employment access for locals.
Key Features of the National Labour Migration Policy
Central to the policy is the requirement that businesses ensure that at least 60% of their workforce comprises South African citizens or permanent residents, employed permanently across various positions. These quotas will limit the number of foreign nationals that can be legally employed in specific industries where South Africans are actively seeking work. These sectors include agriculture, construction, tourism, hospitality and road freight – areas where migrant labour has been historically prevalent.
This threshold is set as a guideline but is subject to adjustment based on labour market analysis. The policy allows flexibility in setting the specific percentage per sector, depending on the local labour market’s needs and availability of skilled workers. This analysis will help determine whether the 60% benchmark should be revised to reflect the employment dynamics in different industries.
The purpose of these quotas is not to completely exclude foreign workers but to ensure that South African citizens, permanent residents, and recognised refugees are given priority. Businesses requiring foreign expertise in sectors experiencing critical skill shortages can apply for exemptions. These exemptions will be granted only if the need for foreign expertise is clearly demonstrated, such as in industries like healthcare, engineering, and ICT.
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The Employment Services Amendment Bill (ESAB), which accompanies the NLMP, lays the legal foundation for the new quota system. The bill introduces enforcement mechanisms that will align South Africa’s existing labour and immigration laws with the NLMP, ensuring compliance. This will allow the government to monitor, inspect, and penalise employers who fail to meet the new legal requirements.
Safeguarding Local Businesses and Ensuring Fair Competition
In addition to the employment quotas, the NLMP imposes restrictions on the issuing of business visas for foreign nationals in certain sectors. Amendments to the National Small Enterprise Act will also limit the establishment of foreign-owned small, medium, and micro-enterprises (SMMEs) in industries that are deemed to be protected. This is aimed at preventing market oversaturation, safeguarding local entrepreneurship, and ensuring that South African businesses have sufficient space to thrive, particularly in sectors with intense competition or informal trading.
While the policy prioritises local employment, it also ensures that South Africa remains committed to its international obligations concerning human rights and labour standards. The NLMP incorporates provisions designed to protect all workers, regardless of nationality, against exploitation and discrimination in the workplace.
Supporting Skills Development and Addressing the “Brain Drain”
Another crucial aspect of the NLMP is its approach to countering South Africa’s “brain drain,” a phenomenon where skilled professionals leave the country for better opportunities abroad. The policy includes measures to promote a “brain gain” by attracting critical skills from around the world and creating pathways for South Africans working overseas to return home. This will help ensure that the country has access to global talent, which is essential for driving economic growth and development.
Implementation and Compliance: What Employers Need to Know
The NLMP introduces a transparent, structured approach to managing labour migration in South Africa. For employers, this means that once the Employment Services Amendment Bill is passed and the relevant regulations are gazetted, compliance with the new quotas will be mandatory. Businesses operating in the affected sectors will need to conduct audits of their workforce, justify the employment of foreign nationals where necessary, and adhere to future quota requirements.
The Department of Employment and Labour is expected to issue further guidelines on the quotas, working closely with various stakeholders to develop fair and evidence-based thresholds. The policy is a clear indication that South Africa is taking a more structured approach to labour migration, balancing the protection of local jobs and industries with the need for international expertise in certain sectors.
The National Labour Migration Policy marks a pivotal moment in South Africa’s approach to managing foreign labour in the country. By introducing quotas and other regulatory measures, the government is aiming to create a fairer job market while encouraging economic growth and ensuring that the needs of South Africans are prioritised. As the policy is implemented, both local and foreign employers will need to stay informed and adjust to the new framework to ensure compliance and support South Africa’s long-term socio-economic development goals. Read the full National Labour Migration Policy 2025 White Paper.
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