Cosatu expresses grave concern over the alarming rise in employers defaulting on pension fund contributions, revealing a staggering R8.33 billion owed to 590,000 workers. This growing crisis threatens the financial security of South African workers and their families.
The Congress of South African Trade Unions (Cosatu) has been deeply alarmed by the growing number of employers defaulting upon workers’ pension fund contributions.
The latest reports from the Financial Sector Conduct Authority (FSCA) tasked with overseeing good governance in our pensions funds, shine a powerful spotlight in what can best be described as a national crime scene.
16 566 employers are in arrears to 75 pension funds for an estimated R8.33 billion affecting 590 000 workers. This is a tripling of the number of employers involved since 2023 and a 14% increase in monies outstanding since 2025.
Sectors where this theft of workers’ hard-earned monies is most prevalent are in the security, cleaning and transport sectors as well as local government.
