BCEA: Pension Fund Contribution Exclusion Withdrawal

Posted 18 August 2025 Written by Acts Online
Category Labour

Brought to you by SA Legal Academy: In terms of the Basic Conditions of Employment Act, No. 75 of 1997, the Department of Employment & Labour has gazetted a notice of intention to withdraw the December 2003 exclusion regarding benefit fund contribution payment timeframes.

The 2003 exclusion currently exempts certain employers and employees from the obligations set out in section 34A of the Act. This section regulates the timing of payments to benefit funds, ensuring that deductions and employer contributions reach the relevant funds promptly.

Under section 34A of the Basic Conditions of Employment Act, No. 75 of 1997, the following requirements apply:

  • Any contribution deducted from an employee’s remuneration must be paid to the fund within seven days of the deduction.
  • Any employer contribution must be paid to the fund within seven days of the end of the period for which the contribution is payable.

The Department has invited public comments on the proposed withdrawal of the exclusion. The deadline for submissions is 17 September 2025. If the withdrawal is finalised, all parties previously exempted will be required to comply with the statutory seven-day payment window.

What this means for you, your business, or your clients

  • For yourself: Update your compliance checklists to reflect that the 2003 exclusion for section 34A is under review for withdrawal, impacting advice on payroll timelines.
  • For your business: Review payroll processing cycles to ensure that pension and provident fund contributions can be remitted within the seven-day statutory deadline if the exemption is removed.
  • For your clients: Advise clients in sectors currently utilizing the 2003 exclusion that they must prepare for stricter enforcement of contribution payment deadlines to avoid non-compliance risks.

Originally published at https://legalacademy.co.za/news/read/bcea-pension-fund-contributions-payment-timeframe-exclusion-to-be-withdrawn

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