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Making Payments of Contributions to Benefit Funds on behalf of my Employees?

Section 34(A) of the BCEA: Payment of Contributions to Benefits Funds.
This section of the BCEA covers the deductions of Pension, Provident, Retirement, Medical aid and/or similar funds.
Before diving into payment of benefits, Employers must take note that there is no obligation to pay certain benefits.
The only time an Employer is Obliged to pay for benefits is if stipulated as such in a Collective Agreement or Legislation for the industry the company operates in.
If an Employer is obliged to pay benefits for their Employee, they can deduct the amount owing from the employee and the money deducted must be paid into the Benefit Fund account within seven days.
If an Employer is required to contribute to a Benefit Fund and this contribution is not deducted from the Employees remuneration, the Employer must pay this contribution over within seven days from which the payment was made.
As previously stated, the Benefits that should be paid is highly dependent on the industry in which the Employer operates within.
It is therefore recommended that the Employer seeks advise from a Labour Consultant/Lawyer before making any obligations to a Benefits fund.
This article aims to provide general information and does not constitute legal advice. For more information contact 021 919 6418 OR erin@joblaw.co.za

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