Check Your Pension: Many Companies Not Paying

A growing number of companies in South Africa are not paying their workers' pension money to the fund administrators. This is a serious problem that affects about 590,000 workers. The total amount of unpaid money is over R8 billion.

What is happening?

The Financial Sector Conduct Authority (FSCA) says the number of companies that are not paying has tripled since 2023. Now, over 16,500 companies are behind on payments. The amount owed has increased by 14% since last year.

Municipalities (local governments) owe 21.5% of the total. Most of the problems are in the North West and Free State provinces. Also, bargaining council funds make up 76.9% of the arrears.

Why does this matter?

If your employer does not pay your pension contributions, your retirement savings could be at risk. This is against the law. The FSCA is working with other government agencies to force companies to pay.

So far, only about 12% of the money has been recovered. But more than 200 companies have started to pay again or made payment plans.

What should you do?

• Contact your employer and ask if your pension contributions are being paid.
• Check with your pension fund (the company that manages the money).
• If you are still worried, report it to the FSCA.

The FSCA says they will keep working with the police and other authorities to protect workers. Don't wait – check your pension status today.

This article was originally published on Sowetan.