IN CONVERSATION WITH ZANELE SABELA (COSATU Spokesperson)
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The Congress of South African Trade Unions (COSATU) has welcomed a
newly gazetted regulation signed by Minister of Employment and Labour,
Nomakhosazana Meth, that empowers labour inspectors to directly enforce
compliance on pension fund contributions. This means employers who deduct
pension contributions from workers’ salaries must now ensure those funds —
along with the employer’s portion — are paid into the relevant pension or
provident fund within seven days.
This intervention comes amid a growing national crisis of non-compliance.
According to the Financial Services Conduct Authority (FSCA), the number of
defaulting employers has more than tripled in just two years. In 2023, there
were about 4,000 non-compliant employers. That figure rose to 7,700 in 2024,
and by last year, it had more than doubled again to over 15,500. Nearly
600,000 workers have been affected — many of whom may now face
retirement without the benefits they worked for.
09:15
The FSCA estimates that unpaid pension contributions stand at more than
R7.2 billion. The most affected sectors include private security, municipalities,
and the automotive industry. In some cases, workers have had to wait years
and approach the courts to recover their money, as seen in recent rulings
allowing former employees to attach company assets to reclaim unpaid
contributions.
COSATU has described this practice as criminal, arguing that it robs workers
of both their money and the long-term benefits of compound growth. The
federation says this reform is part of broader labour law victories secured at
Nedlac after years of pressure and negotiation.
While National Treasury’s decision to withhold funds from municipalities that
default on third-party payments has improved compliance in some areas,
COSATU insists more must be done. The federation is calling for increased
inspections in high-risk sectors, closer collaboration with unions, and the
urgent finalisation of government’s promise to hire 20,000 additional labour
inspectors.
At the heart of this issue is a bigger question about dignity, accountability, and
workers’ rights: How many South Africans are working today, unaware that
their future financial security is being stolen in real time?
newly gazetted regulation signed by Minister of Employment and Labour,
Nomakhosazana Meth, that empowers labour inspectors to directly enforce
compliance on pension fund contributions. This means employers who deduct
pension contributions from workers’ salaries must now ensure those funds —
along with the employer’s portion — are paid into the relevant pension or
provident fund within seven days.
This intervention comes amid a growing national crisis of non-compliance.
According to the Financial Services Conduct Authority (FSCA), the number of
defaulting employers has more than tripled in just two years. In 2023, there
were about 4,000 non-compliant employers. That figure rose to 7,700 in 2024,
and by last year, it had more than doubled again to over 15,500. Nearly
600,000 workers have been affected — many of whom may now face
retirement without the benefits they worked for.
09:15
The FSCA estimates that unpaid pension contributions stand at more than
R7.2 billion. The most affected sectors include private security, municipalities,
and the automotive industry. In some cases, workers have had to wait years
and approach the courts to recover their money, as seen in recent rulings
allowing former employees to attach company assets to reclaim unpaid
contributions.
COSATU has described this practice as criminal, arguing that it robs workers
of both their money and the long-term benefits of compound growth. The
federation says this reform is part of broader labour law victories secured at
Nedlac after years of pressure and negotiation.
While National Treasury’s decision to withhold funds from municipalities that
default on third-party payments has improved compliance in some areas,
COSATU insists more must be done. The federation is calling for increased
inspections in high-risk sectors, closer collaboration with unions, and the
urgent finalisation of government’s promise to hire 20,000 additional labour
inspectors.
At the heart of this issue is a bigger question about dignity, accountability, and
workers’ rights: How many South Africans are working today, unaware that
their future financial security is being stolen in real time?
