Two New Laws Changing Pension Funds in South Africa
Two new legal changes are tightening the rules around retirement fund contributions in South Africa—making it harder for employers to delay or avoid payments.
Legal experts from Webber Wentzel say these changes will significantly improve enforcement.
1. Law Already in Effect (Since January 2026)
From 8 January 2026, the government removed an old exemption. This means labour inspectors can now enforce retirement fund payments under the Basic Conditions of Employment Act (BCEA).
What this means:
- Employers must pay employee contributions within 7 days after deducting them from salaries
- Employers must pay their own contributions within 7 days after month-end
- Labour inspectors can now take action immediately if employers don’t comply
👉 In short: Employers can no longer delay pension payments without consequences.
2. New Bill (Still Under Review)
A second change is part of the proposed Employment Laws Amendment Bill, which is still open for public comment.
If passed, it will:
- Treat unpaid pension contributions the same as unpaid wages
- Allow multiple authorities to enforce payment
These include:
- The Commission for Conciliation Mediation and Arbitration (CCMA)
- Labour inspectors
- The Labour Court
- Bargaining councils
All of them could order employers to:
- Pay outstanding contributions
- Pay interest on late payments
Big Impact on Employers
The law also introduces serious personal risk for company leadership.
Under the Pension Funds Act, directors and managers involved in finances can be personally liable if contributions are not paid.
A Problem Still Exists
There is one major issue:
Different laws have conflicting deadlines for payments.
- BCEA: Pay employee contributions within 7 days of deduction
- Pension Funds Act: Pay within 7 days after month-end
This mismatch can create confusion and risk:
- An employer might follow one law but accidentally break another
- Businesses with weekly or bi-weekly payrolls are especially affected
What Happens Next?
The proposed changes are still open for public comment until 28 March 2026.
Experts say clearer rules or guidance may be needed to avoid confusion.
Bottom Line
- Employers face stricter enforcement on pension payments
- Multiple authorities can now pursue unpaid contributions
- Company directors could be personally liable
- Some confusion remains due to conflicting deadlines
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