At the end of every pay period the employer must deduct an amount equal to 6,6% from the pensionable remuneration of employee.

PLEASE NOTE: As from 1 July 2012 the contribution rate will be 6.7% of the employees' pensionable remuneration.

The Employer will contribute 6,6% of the total pensionable salary bill.

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.

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 6.7% = R53.60 

The employer will contribute an equal amount.

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:

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.

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