Question:
Good day. I would like to know if provident fund contributions are compulsory for both the employer and employee?
Answer:
Jaro,
If your employer offers a provident fund, and, you, as a new employee, are eligible to join, then you must join the fund. If you are already an employee of the company when the provident fund is launched, then you are not obliged to join the fund. Who contributes what, and how much, is determined by the special fund rules. In a provident fund it is usually the employer who contributes, as presently only the employer gets the deduction on provident fund contributions. But some funds do provide for an employee contribution.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
