LATEST UPDATES: ASSISTING EMPLOYERS AND EMPLOYEES DURING THE LOCKDOWN – 1 APRIL 2020

 What gets paid or doesn’t get paid to the NBCEI during the lockdown?

1. All employers and employees who are observing the current lockdown and who do not carry out any work are exempted from paying retirement fund contributions except risk benefit contributions (Disability, Death and Funeral). NB: The Cape Funds are not affected by this exception as they will pay the risk benefit contributions on behalf of employers from the Funds’ Risk Reserve Account.

2. In addition, all employers and employees referred to in point 1 above are also excluded from paying the SBF contributions, council levies as well as the CBL. All employers and employees who are working during the current lockdown shall make all normal contributions in respect of the retirement fund as well as the applicable payments towards the SBF, council levies and the CBL.

3. Members of the Association who observe the lockdown and do not carry out any work are exempted from paying ECA levies for the period of the lockdown.

4. Members of the Association who continue to work during the lockdown period shall pay the ECA levies for the period of the lockdown.

Collaboration between the NBCEI and UIF

1. The NBCEI and the UIF are about to enter into a Memorandum of Agreement in order to expedite the payment of UIF benefits to the employees affected by the lockdown.

2. In terms of this MOA, the UIF will make funds available to the NBCEI. The NBCEI will make such funds available to employers to pay employees affected by the lockdown on behalf of the UIF.

3. In order to qualify for payment, an employer is required to submit the following documents:

✓ The name of the employer

✓ The employer’s UIF details

✓ The employer’s bank account details

✓ Details of the employer’s accountant or auditor

✓ List of employees and their dates of employment, ID and UIF details

4. This information must be e-mailed to your nearest NBCEI Regional manager by no later than 12h00 on 03/04/2020.

Possibility of additional assistance?

1. The parties to the NBCEI are exploring the possibility of securing funds elsewhere so that employers in Regions A, B and C can also be granted a contribution holiday in respect of risk benefits (Disability, Death and Funeral).

2. Both the Association and the NBCEI will keep you updated.

Issued by: SDT Khola, ECA(SA) National Labour Relations & HR Director

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