By Jose Jorge | Director and Alex van Greuning | Associate

‍

On 18 August 2025, the Minister of Employment and Labour signalled an intention to withdraw the 24 December 2003 ministerial determination that has, until now, excluded funds regulated by the Pension Funds Act, 1956 (PFA) from the BCEA time periods in section 34A of the Basic Conditions of Employment Act (BCEA). Interested parties have 30 days to submit written representations, by 17 September 2025, to unathiramabulana@labour.gov.za.

The Current Position

Section 34A of the BCEA requires employers who deduct contributions from employees’ remuneration for benefit funds (pension, provident, retirement, medical aid or similar) to pay those amounts to the fund within seven days of the deduction. Employer contributions that are not deducted from remuneration must be paid within seven days of paying the employee. However, the 2003 determination excludes PFA-regulated funds from section 34A. For those funds, section 13A of the PFA applies and requires payment no later than seven days after the end of the month for which the contribution is due, commonly the 7th of the following month.

What Would Change?

If the 2003 determination is withdrawn, PFA-regulated funds would also fall under the BCEA’s seven-day-from-deduction/payment rule. In practice, that is generally earlier than the current PFA timeline. For example, if payroll (and deductions) run on the 25th, payment would need to reach the fund by about the 1st of the next month (seven days after deduction), rather than by the 7th (seven days after month-end). In addition, labour inspectors would gain explicit authority under the BCEA to monitor and enforce timeous payment of contributions to PFA-regulated funds.

Practical Implications

Employers should prepare to bring contribution payments forward where payroll falls before month-end, and ensure payroll calendars, cash-flow planning and provider SLAs accommodate the shorter clearing window. Contribution schedules, membership updates and proof-of-payment processes may need to be tightened immediately after payroll to avoid slippage. Given the likely expansion of labour-inspector oversight, it is prudent to review internal controls, record-keeping and escalation protocols now. Finally, if the proposed change has operational or cost impacts for your organisation, consider submitting representations by 17 September 2025.

Status note: This is a notice of intention only. Until a final withdrawal is gazetted, the current PFA timelines remain in force for PFA-regulated funds, and section 34A continues to apply to other benefit funds (e.g., medical schemes).

‍