Sick benefit fund committee’s statement on sick benefit subsidies

January 28th, 2019, Published in Articles: Vector

The Sick Benefit Fund Committee for Region A and Region B would like employers to note that the subsidy in relation to contributions to the National Sick Fund will be strictly applied. The main collective agreement requires that employers pay over contributions to the Bargaining Council for the Electrical Industry by the 15th day of the month following the month in which contributions have been deducted from employees. This money must be with the Bargaining Council by that date.

If the money is with Council by that date, the employer is in good standing and the subsidy will be processed and paid across to the National Sick Pay Fund. Should the money not be with the council by the 15th of the month following the month in which contributions are deducted from employees, no subsidy will be processed and the employer will get a compliance order to pay the difference. All employees will only be entitled to benefits if their contributions have been paid and they are in good standing. If the claimants are not in good standing, the National Sick Benefit Fund will not honour claims.

We urge all employers to ensure that they pay their contributions in time so as they will enjoy uninterrupted benefits and to have full subsidy for both employer and employer contributions.

The committee has also assessed the remaining assets in the Region A and B Sick Benefit Fund and project that the 1% subsidy for the employer’s contribution and the 1% subsidy for the employee’s contribution is likely to last until February 2019. There would be no other monies generated from anywhere to pay the subsidy beyond this day. Should this projection be accurate, the employer and the employee would then be required to pay a full 3% each towards the National Sick benefit Fund.

The Regions A and B funds subsidised contributions to the National Sick Benefit Fund for twelve months at 66,34% for both employer and employee contributions with a vastly improved benefit structure calculated on actual wages. The subsidy reduced to 33,33% in May 2018 at an increased rate of pay and again at actual rates of pay. It was anticipated at commencement that the subsidy would have taken us to April 2019. Projections suggest that the subsidy will carry us to February 2019 and this communication serves to prepare both employers and employees that this subsidy is coming to an end.

Please do not put yourself in a position where the subsidy is not paid due to late payments. This will cost you more and increase the burden on the businesses and employee’s wages. The Sick Benefit Fund urges you to avoid this increase to the cost of employment.

Regions A and B of the Sick Benefit Fund Committee


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