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WITHDRAWAL OF THE VARIATION NOTICE IN TERMS OF SECTION 50(9)(a) OF THE BASIC CONDITIONS OF EMPLOYMENT ACT, 1997 (ACT NO. 75 OF 1997)

January 16, 2026

The Minister of the Department of Employment and Labour, Honourable Nomakhosazana Meth, has published a notice in terms of section 50(9)(a) of the Basic Conditions of Employment Act 75b of 1995 to formally withdraw the 2003 Variation Notice that excluded pension funds regulated under the Pension Funds Act from the application of section 34A of the BCEA. Therefore,

  1. It immediately subjects PFA-regulated pension and provident fund contributions to section 34A of the BCEA.

  2. It restores labour inspectors’ authority to enforce the BCEA’s “ seven days from deduction ” payment rule.

The 2003 Ministerial Determination was explicitly designed to avoid dual enforcement regimes, preserve the PFA as the primary statute governing retirement funds, and prevent labour inspectors from encroaching on financial sector regulation. Under the PFA, compliance is assessed seven days after month-end, but under the BCEA, compliance would be assessed seven days after deduction.

Though the Labour Law Reform proposed amendments of the Basic Conditions of Employment Bill is said to clarify the application of the enforcement provisions of the BCEA to claims related to non-payment of benefit fund contributions and clarify the powers of the Labour Court, CCMA and bargaining councils when dealing with claims relating to the non-payment of pension or provident fund contributions, this withdrawal prioritises speed of enforcement, but does not yet strengthen criminal enforcement, personal accountability, or regulatory supervision.  

Employers are encouraged to ensure that contributions are paid within prescribed times. Furthermore, employers should also maintain precise records of deduction dates, proof of timely payment, and internal controls capable of withstanding inspection scrutiny.

Members with any queries, please submit them to Tsakane Muavha at Tsakane.Muavha@busa.org.za   or Mahlatse Mabila at Mahlatse.Mabila@busa.org.za