The South African Federation of Trade Unions (SAFTU) notes the Government Notice published in the Government Gazette on 13 January 2026, in which the Minister of Employment and Labour,
Nomakhosazana Meth, withdraws the long-standing variation notice issued in December 2003 in terms of section 50(9)(a) of the Basic Conditions of Employment Act (BCEA).
What this decision means:
The withdrawal of the 2003 notice restores the full enforceability of section 34A of the BCEA, which obligates employers to pay over:
- amounts deducted from workers’ wages for pension, provident, medical aid, or other benefit funds;
- And the employer’s own contributions within seven (7) days to the relevant benefit fund.
Crucially, this decision empowers labour inspectors to act decisively against employers who deduct workers’ money but fail to remit it, a practice that has robbed thousands of workers of retirement savings, medical cover, and death and disability benefits.
SAFTU’S POSITION
SAFTU welcomes the withdrawal of this exemption. For more than two decades, the 2003 variation effectively shielded delinquent employers from enforcement, despite workers’ money being lawfully deducted from their wages. This created a perverse situation where workers carried the risk while employers enjoyed impunity.
This step affirms a simple but fundamental principle:
Money deducted from workers does not belong to employers. It belongs to the workers. However, enforcement is key
SAFTU cautions that a legal correction, on its own, is not sufficient. The real test lies in: - Consistent and proactive inspections,
- Criminal and civil consequences for defaulting employers,
- Cooperation between the Department of Employment and Labour, benefit funds, and the FSCA
- Protection for whistle-blowing workers.
Without visible enforcement, workers will continue to suffer despite the law being clear. Broader context
This decision highlights a wider structural problem in the labour market: - Widespread non-compliance
- Weak enforcement capacity
- A culture where employers treat worker’s statutory and contractual entitlements as optional.
SAFTU reiterates that workers are already under severe pressure from low wages, rising living costs, and austerity. The theft of deferred wages through unpaid benefit contributions deepens poverty and inequality and must be treated as economic misconduct, not an administrative oversight.
Way forward
SAFTU CALLS FOR:
- A national audit of outstanding benefit fund arrears.
- Public reporting on enforcement actions taken under section 34A.
- Strong penalties, including prosecution, for repeat offenders.
- Worker education campaigns on rights relating to deductions and benefit funds.
SAFTU will closely monitor implementation and will support workers and affiliates in pursuing enforcement wherever employers continue to abuse the system.
Issued on behalf of the SAFTU General Secretary Zwelinzima Vavi.
For media inquiries, contact the National Spokesperson at:
Newton Masuku
newtonm@saftu.org.za
0661682157
Media Officer
Asive Dyani
0719019564
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