Over 7 700 Employers Default On Pension Contributions: Godongwana
Finance Minister Enoch Godongwana has confirmed that about 7 770 employers have defaulted on paying their pension fund contributions as of December 2023.
The Minister says this failure had a negative impact on the implementation of the payment of the two-pot retirement system in September.
Godongwana emphasises this in his response to a written parliamentary question from Economic Freedom Fighters EFF MP Constance Mkhonto.
Deputy Commissioner of the Financial Sector Conduct Authority Atrid Ludin indicated during their briefing in Parliament, that they have begun the process of naming employers that are transgressing.
"We do not publish all those names because there could be a problem around allocations for example. So we won't publish everybody who has one month of arrears. In our latest publication, we published just over 2 000 employers. The names of the 2 000 employers and those are the names that have been in arrears for more than five months. We have seen quite an impact with this publication. So the data that we receive from funds shows since our first publication to our last, 1 000 employers have already rectified the situation, either by agreements or by concluding an agreement with their funds."
