Thursday, 17 April 2014

 
METAL INDUSTRIES PROVIDENT FUND
 
 
Metal Industries Provident Fund Contribution Rates:
 
Employee
 

At the end of every pay period the employer must deduct from the employee’s pensionable remuneration an amount equal to the following percentage:

 

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%

 

PLEASE NOTE: As from 1 July 2013 the contribution rate will be 6.8% of the employees' pensionable remuneration

 
Employer
 

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:

 

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%

 

PLEASE NOTE: As from 1 July 2013 the contribution rate will be 6.8% of the employees' pensionable remuneration

 
Calculating Contribution Deductions:
 

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.

 
 
Example: 
 

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 6.8% = R54.40 

The employer will contribute an equal amount.

 
 
Tax Implications:
 
Contributions to the Metal Industries Provident Fund are to be deducted from earnings AFTER calculating PAYE or SITE.
 
 
Bank Account Details::
 
 

Payment of contributions is to be deposited directly into the account of the Metal Industries Provident Fund the same day as submitting the contribution returns via the Internet or EDI:

 
 
First National Bank
Account number: 506 000 610 43
Account Branch: Johannesburg
Branch Code: 251-305
 
 
Voluntary Contributions:
 
 

An employee is entitled to make Voluntary Contributions to either the Pension or the Provident Fund for the purpose of enhancing the retirement benefits. These contributions may exceed the taxfree limit of R 1 800 per annum but only R 1 800 will be tax deductible in respect of Pension Fund contributions. 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.

 
 
Contact Details for Contribution Enquiries
 
 

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) 870-2062
Fax: (011) 870-2411

P O Box 61474,
Marshalltown,
2107