When should I start contributing to my retirement fund?


Question:

I was offered a ctc salary of R16000 pm and said that no pension contribution would be made for the first 3 months. When I received my first salary it was based on a basic salary of R16000 less the pension contribution. I had understood that I would earn extra for 3 months because I wasnt paying pension?? the company disagrees. Could you clarify this for me please?

Answer:

Irene, This depends on the fund rules. Some categories of employees typically only start contributing after three months because of high staff turnover in those categories (eg call centre employees), but typically all other employees must start contributing from their first month of employment. Your HR department should show you the Special Fund Rules, to confirm when you should start contributing.

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.


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