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

Notices

National Bargaining Council for the Clothing Manufacturing Industry

Consolidated Provident Fund Collective Agreement for the KwaZulu-Natal Region

6. Contributions

 

(1)        Employees" contributions

 

For the purpose of the Fund and for all employees falling within the scope of clause 1 (1) (b) of this Agreement, each employer shall deduct from the wages of each of his employees who have worked during any week or part thereof, 6,5% of the employee"s basic weekly wage, as defined in this Agreement: Provided that no deduction shall be made from the wages of any contributor after retirement age, unless he has elected to defer his retirement.

 

(2)        Employers" contributions

(a) In addition to the amount deducted in terms of subclause (1), and for all employees falling within the scope of clause 1 (1) (b) of this Agreement, the employer shall contribute to the Fund—
(i) 4,75% of an employee"s basic weekly wage, as defined in this Agreement, provided that the employee worked during the week or any part thereof, which contribution shall be applied in accordance with subclause (12); and
(ii) 2,25% of an employee"s basic weekly wage, as defined in this Agreement, irrespective of whether or not the employee actually worked during the week and irrespective of whether or not the employee is on maternity leave, sick leave or short time, which contribution shall be allocated to the Risk Reserve Account in terms of clause 7 (1) (B) (a) (i) (aa) and applied in accordance with clause 7 (1)(B) (a) (iii).
(b) For the purpose of the Fund, and for all employees falling within the scope of clause 1 (1) (c) of this Agreement, an employer shall, save as provided for in clause 1 (2) (b) of this Agreement, each week, in the case of weekly paid employees, or each month, in the case of monthly paid employees, contribute to the Fund an amount equal to 4,0% of the wage of each of his employees in respect of whom wages are prescribed in Part I of the National Main Collective Agreement of the Council and who has worked nine (9) ordinary hours or more during any pay week.

 

(3) The employer shall pay all such contributions, monthly by the tenth (10th) day of each month, to the Secretary of the Council.

 

(4) Such total sum must be accompanied by a list showing the name and address of the employer, the record of service card number of employees from whom deductions are made, the amount of each deduction and the total amount of the employer"s contribution.

 

(5) In the case of the first such payment by any employer the payment must be accompanied by the following additional information:
(a) The full names and address of each contributor;
(b) the record of service card number of each contributor;
(c) a duly completed Beneficiary Nomination Form, in terms of clause 8 (2) of this Agreement stating the names and addresses of the contributor"s beneficiary/beneficiaries or nominees and the employer shall thereafter notify the Fund week by week of all changes in the list of contributors.

 

(6) The employer shall each month notify the Fund of all contributors who have been absent without pay for four (4) or more consecutive pay weeks.

 

(7) An employer shall not deduct the whole or any part of his contribution from the earnings of a contributor or receive any consideration from the contributor in respect of such contribution.

 

(8) When a contributor is on leave on full pay or less than full pay and/or when a contributor is on short-time, both his and the employer"s contribution shall be continued: Provided that this subclause shall not apply in respect of members who were subject to the scope of clause 1 (1)(c) of this Agreement and in respect of whom contributions had been made in terms of clause 6 (2) (b) of this Agreement.

 

(9) If any contribution is made to the Fund in error, the Fund shall not be liable to repay that contribution after the lapse of six (6) months from the date of such payment.

 

(10) Whenever any benefit has been mistakenly paid to a member as a result of such member having made to the Fund payments which were not due the Management Committee may set off the amount of benefits so paid—
(a) against any sum claimed from the Fund as a repayment of such contributions which were not due; and
(b) against any future benefits that may become due by the Fund to the said member.

 

(11) The contributions made in respect of each member in terms of subclauses (1), (2) (a) (i) and (2) (b) shall be applied equally, after deduction of any Group Life and Income Protection Assurance premiums, to such member"s account and employer"s account.

 

(12) The contributions made by and in respect of each member in terms of subclauses (1) and (2) (a) (i) and (b) shall be applied in the ratio of their contributions to the member"s account and the employer"s account.