Posted by: Albert | 2009/01/09

Provident fund deductions

I' m 57 + have been working 4 my co. 17yrs. We r approx. 18 on the prov. fund. Although every benifit statement shows a good growth, no deductions r shown on our pay slip. What the boss does is to show our salary after the prov. fund deductions as our gross salary. Also the co. pays our medical aid but it' s not shown as a benifit on our pay slip. So we only pay tax on our so called gross. I' m starting to worry because in a few yrs. I gon on retirement + wonder if there won' t b some sort of problem. Could it be that the co. is using this method to be able to claim back more on co. tax? If so , could this have a negative effect on employees in the long term? The boss won' t change the system.

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Our expert says:
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I suggest that you get someone to advise you who is a Provident Fund Expert.

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Our users say:
Posted by: Boetie | 2009/01/09

I dont know how legal their actions are but I can tell you this it will affect the amount you can claim if you should ever have to apply for unemployment  they work on your gross income as shown on your pay slip + that will be the amount after your fund contribution. Seems very unfair to me   I would guess that the company is getting some or other tax benefit at the workers expence.

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