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| ENGINEERING INDUSTRIES PENSION FUND / METAL INDUSTRIES PROVIDENT FUND |
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| Engineering Industries Pension Fund / Metal Industries Provident Fund Contribution Rates: |
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| Employee |
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At the end of every pay period the employer must deduct from the employee’s pensionable remuneration an amount equal to the following percentage: |
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Period prior to 1 July 2012 - 6,6% |
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Period 1 July 2012 to 30 June 2013 - 6.7% |
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Period 1 July 2013 to 30 June 2014 - 6.8% |
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Period 1 July 2014 to 30 June 2015 - 6.9% |
Period 1 July 2015 to 30 June 2016 - 7.0% |
Period 1 July 2016 to 30 June 2017 - 7.1% |
Period 1 July 2017 to 30 June 2018 - 7.2% |
Period 1 July 2018 to 30 June 2019 - 7.3% |
Period 1 July 2019 to 30 June 2020 - 7.4% |
Period 1 July 2020 to 30 June 2021 - 7.5% |
Period 1 July 2021 to 30 June 2022 - 7.5% |
Period 1 July 2022 to 30 June 2023 - 7.5% |
Period 1 July 2023 to 30 June 2024 - 7.5% |
PLEASE NOTE: As from 1 July 2023 the contribution rate will be 7.5% of the employees' pensionable remuneration |
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| Employer |
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The employer will contribute at a fixed percentage of the total pensionable salary bill. The Funds Actuary will advertise this rate from time to time. The employer contribution rate is as follows: |
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Period prior to 1 July 2012 - 6,6% |
Period 1 July 2012 to 30 June 2013 - 6.7% |
Period 1 July 2013 to 30 June 2014 - 6.8% |
Period 1 July 2014 to 30 June 2015 - 6.9% |
Period 1 July 2015 to 30 June 2016 - 7.0% |
Period 1 July 2016 to 30 June 2017 - 7.1% |
Period 1 July 2017 to 30 June 2018 - 7.2% |
Period 1 July 2018 to 30 June 2019 - 7.3% |
Period 1 July 2019 to 30 June 2020 - 7.4% |
Period 1 July 2020 to 30 June 2021 - 7.5% |
Period 1 July 2021 to 30 June 2022 - 7.6% |
Period 1 July 2022 to 30 June 2023 - 7.7% |
Period 1 July 2023 to 30 June 2024 - 7.9% |
PLEASE NOTE: As from 1 July 2023 the contribution rate will be 7.9% of the employees' pensionable remuneration |
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| Calculating Contribution Deductions: |
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Pensionable Remuneration - means the wages receivable by the employee from the employer each week calculated on the basis of ordinary hours worked by such employees in the shifts of the establishment concerned. This includes any remuneration payable in terms of any Agreement or under any law but excluding amounts paid in respect of overtime, shift allowances, other allowances and holiday leave bonuses.
In the case of monthly paid employees, the remuneration shall be the amount as determined above.
"SHIFT," means the period of work ordinarily worked by an employee in any period of 24 hours. |
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| Example: |
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An employee earns an hourly rate of R20.00
8 hours = 1 shift.
40 hours = 5 shifts (5 days)
40 x R20.00 = R800.00
R 800.00 x 6.9% = R55.20
The employer will contribute an equal amount. |
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| Tax Implications: |
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As from 1 April 2012, the Engineering Industries Pension Fund has converted to a Defined Contribution fund with the following implication: |
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The Engineering Industries Pension Fund is recognised as a Pension Fund for the purposes of the Income Tax Act No 58 of 1962, as amended.
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Contributions to the Engineering Industries Pension Fund are to be deducted from earnings BEFORE calculating PAYE or SITE.
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| Bank Account Details:: |
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Payment of contributions is to be deposited directly into the account of the Engineering Industries Pension Fund the same day as submitting the contribution returns via the Internet or EDI: |
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First National Bank
Account number: 506 000 606 99
Account Branch: Johannesburg
Branch Code: 251-305 |
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| Voluntary Contributions: |
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An employee is entitled to make Voluntary Contributions to either the Pension or the Provident Fund for the purpose of enhancing the retirement benefits. The tax free portion of contributions is capped at 27.5% of remuneration. These contributions can be paid annually or on a monthly basis as arranged with the company.
For the purpose of monthly payments, employers are to kindly reflect the individual contributions on the Remittance Advice or on a separate schedule.
With regard to lump sum payments, please ensure that cheques are received before the 28 February of the tax year in order to qualify for tax deductibility in the year.
Over and above the additional benefit that an employee will receive on his retirement from the Voluntary Contribution each year, he will also receive tax benefits on the contributions paid when lump sum taxation is applied for. |
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| Contact Details for Contribution Enquiries |
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For any queries regarding Pension, Provident or Sick Pay contributions, the Supervisor in the Contribution Processing department may be contacted on the following numbers:
Tel: (011) 688-3114/5
Fax: (011) 870-2411
P O Box 61474,
Marshalltown,
2107 |
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