The Financial Sector Conduct Authority has raised concerns over a sharp increase in employers failing to pay pension fund contributions.
The number of defaulting employers has surged from around 5,400 in 2023 to more than 16,000 this year.
The regulator says fund members are affected, with outstanding arrears totalling R8.3bln.
The FSCA has warned that delayed payments are accumulating interest, putting workers’ retirement savings at risk.
The authority’s Takalani Lukhaimane says, “We’ve got about 600,000 members that are affected, and as at 28 February this year, 45% of that is actually late payment interest.”
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