Workers face uncertainty over retirement savings as unions warn that billions in pension contributions have not been paid over by employers.
Labour unions have sounded the alarm over the growing number of employers allegedly failing to pay pension contributions into retirement funds after deducting the money from employees’ salaries.
The Public Servants Association (PSA) said more than R8 billion in pension contributions had not been paid over by employers, leaving workers at risk of discovering gaps in their retirement savings only when they resign, retire or submit benefit claims.
Economists have warned that the issue could have serious consequences for workers, many of whom already face difficulty retiring comfortably even when they receive their full pension benefits.
In a statement, the PSA said it was “shocked and outraged” by reports that thousands of employers across South Africa had failed to pay over pension contributions, with arrear payments amounting to R8.3 billion.
