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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Metal and Engineering Industries

Extension to Non-parties of the Consolidated Provident Fund Collective Amending Agreement

6. Contributions

 

(1) Contributions, as hereinafter provided for, shall be made by employees and employers as from the date of coming into operation of this Agreement.

 

(2) Contributions in respect of this Fund and the Metal and Engineering Industries Permanent Disability Scheme (hereinafter referred to as the 'Scheme'):

 

(a) The employer shall each week deduct from the pensionable remuneration of each of his employees as follows:

 

As gazetted on 9 November 2018, in Notice No 685 of the Government Gazette 42021

Years

Employee contribution

1 July 2015 to 30 June 2016

7%

1 July 2016 to 30 June 2017

7,10%

1 July 2017 to 30 June 2018

7,20%

1 July 2018 to 30 June 2019

7,30%

1 July 2019 to 30 June 2020

7,40%

From 1 July 2020

7,50%

 

(b) Contributions calculated in accordance with the provisions of paragraph (a) may at the discretion of the employer, be deducted from the earnings of any other employees who request in writing to become members of this Fund: Provided that the membership provisions under clause 5 shall mutatis mutandis apply to such employees.

 

(c) The employer shall pay to the Fund a percentage of pensionable remuneration as follows:

 

As gazetted on 9 November 2018, in Notice No 685 of the Government Gazette 42021

Years

Employee contribution

1 July 2015 to 30 June 2016

7%

1 July 2016 to 30 June 2017

7,10%

1 July 2017 to 30 June 2018

7,20%

1 July 2018 to 30 June 2019

7,30%

1 July 2019 to 30 June 2020

7,40%

1 July 2020 to 30 June 2021

7,50%

1 July 2021 to 30 June 2022

7,60%

1 July 2022 to 30 June 2023

7,70%

1 July 2023 to 30 June 2024

7,90%

1 July 2024 to 30 June 2025

8,10%

1 July 2025 to 30 June 2026

8,30%

1 July 2026 to 30 June 2027

8,50%

1 July 2027 to 30 June 2028

8,70%

1 July 2028 to 30 June 2029

8,90%

1 July 2029 to 30 June 2030

9,10%

1 July 2030 to 30 June 2031

9,30%

1 July 2031 to 30 June 2032

9,50%

1 July 2032 to 30 June 2033

9,70%

1 July 2033 to 30 June 2034

9,90%

1 July 2034 to 30 June 2035

10,10%

1 July 2035 to 30 June 2036

10,30%

From 1 July 2036

10,50%

 

(d) The employee deductions and employer payments shall be made from the implementation date. During the Contribution Increase Program, the Fund will pay an additional amount from the surplus reserve to a total contribution of 18%. If the Fund is unable to pay the difference between 18% and the employee deductions and employer deductions at any time during the Contribution Increase Program, the employee deductions and employer payments will be set at the level reached at the last anniversary of increases, in terms of the Contribution Increase Program.

 

(e) The employer and employee contribution shall be apportioned as follows:
(i) An amount in the sole discretion of the Board equal to a specific percentage of the pensionable remuneration (as set out in (a) and (c) above) of each of the employees concerned shall be paid to the Scheme; and
(ii) From the amounts in (a) and (c) above, the amount required to meet the cost of disability benefits and from (c) above the cost of death benefits and such administration and other expenses as may be determined by the Board shall be applied for this purpose.
(iii) The balance shall be the employee's and employer's contribution to the Fund for retirement benefits.

 

(3) No deductions shall be made or contributions paid in respect of periods of absence on unpaid leave, and absences owing to sickness, injury on duty and military service where no payment is due to the employee by the employer in terms of an agreement or under any law.

 

(4)
(a) Every employer in regions A, B, C, D, E and F shall forward the total amount payable each month in terms of sub-clause (2), together with a statement in such form as may be prescribed from time to time, to reach the Council at its MIBFA Bargaining Council Collection Unit, Second Floor, Metal Industries House, 42 Anderson Street, Johannesburg , 2001 by no later than close of business on the 7th day of the subsequent month.
(b) The employer uses the postal service, a courier service or any other means of delivery or transfer at the employer's own risk. The relevant postal address is P O Box 61474, Marshalltown, 2107. A facility for direct bank-to-bank transfer of funds is also available. Enquiries may be directed to the Funds Contribution Manager at the above address or telephone (011) 870-2000.

 

(5) Notwithstanding the provisions of this clause, failure on the part of the employer to make the deduction of employees' contributions which he is required to make shall not be absolve the employer from having to submit the total amount of the employees' contributions and his own contributions to the Council.

 

(6) All contributions received by the Council shall be paid to the Provident Fund and the Scheme within seven days of receipt of such monies by the Council.

 

(7)
(a) If any amount that falls due in terms of this clause is not received in full by the Council by the 1st day of the month following the month for which the amount is payable, then the employer shall be liable to pay interest in accordance with the following provisions:
(i) The interest payable shall accrue on the balance of the amount outstanding from time to time from the 1st day until the full amount is received by the Council.
(ii) The interest shall accrue at the effective rate and terms as prescribed by the Act and Regulation to the Act.
(iii) All the other provisions of the Act that are relevant for the purpose of calculating any interest payable by the employer in terms of this sub-clause shall mutatis mutandis apply for these purposes.
(b) For the purposes of this sub-clause, 'the Act' means the Pension Funds Act as amended from time to time.

 

(8) In the event of the Council incurring any costs or becoming obliged to pay any collection commission by reason of the failure of the employer to make any payment on or before the due date, the employer shall then be liable to pay forthwith all such costs of whatever nature as between attorney and client and all such collection commission.