FSCA warns: Over 15,000 employers fail to pay R7.23 billion in retirement fund contributions
The Financial Sector Conduct Authority (FSCA) has sounded the alarm over 15,521 employers reported for failing to pay retirement fund contributions.
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The Financial Sector Conduct Authority (FSCA) has sounded the alarm over 15,521 employers reported for failing to pay retirement fund contributions.
In a report released to the media on Thursday, the FSCA published the names of 5,821 employers whose arrears exceeded specified thresholds.
According to the financial report, the total outstanding arrears linked to the published employers are estimated at R7.23 billion, which includes R2.98 billion in late payment interest.
"As at 31 March 2025, the FSCA received reports of 15521 employers in contravention of Section 13A of the PFA. Of these, 5821 employers have been published due to the severity and duration of their arrears," FSCA said.
The FSCA added that the 50% increase in non-compliant employers since December 2023 is primarily due to the inclusion of two large retirement funds, the Auto Workers Provident Fund and the Motor Industry Provident Fund.
"This represents a 50% increase in non-compliant employers since the 31 December 2023 publication, primarily driven by the inclusion of two of the largest retirement funds in the industry – the Auto Workers Provident Fund and the Motor Industry Provident Fund. Together, these funds account for 3,353 (57.5%) of the 5,821 published employers".
The financial regulator also noted that while some employers may settle outstanding contributions, they often do not fully pay the accumulated late payment interest.
"With the inclusion of the Auto Workers and Motor Industry Provident Funds, total arrears are now estimated at R7.23 billion, of which R2.98 billion is attributable to late payment interest".
The report provides a detailed breakdown of the types of arrears and employer categories:
- 5,671 employers owe more than R50,000, with contributions overdue for five months or more.
- 80 employers owe more than R50,000 but have not provided their last contribution date.
- 79 employers owe less than R50,000 in contributions but have late payment interest exceeding R50,000, overdue for five months or more.
- 17 employers have only late payment interest outstanding.
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