Boss deducting pension money but not paying it over
An employee discovers that pension contributions have been deducted from their salary for months but never paid into the pension fund — leaving them unprotected and their employer in criminal territory.
Premiumintermediate8 minutes
The Situation
What They Said
“My payslip shows you are deducting my pension contribution, but the fund says you haven't paid it over — that is a criminal offence under Section 13A of the Pension Funds Act.”
You notice your payslip shows pension deductions every month, but after calling the pension fund directly you discover your employer hasn't paid over any contributions for the past six months. Thousands of rands of your money are sitting in the company's bank account instead of in your fund, meaning you have also lost death and disability cover during this period.
The Fallacy
Cash Flow Crisis Justifies Holding Employee Funds
The employer is treating your deducted pension contributions as a temporary business loan during a difficult period. But pension deductions are not the employer's money — they are held in trust for you from the moment they are deducted from your salary. No financial difficulty, however genuine, gives an employer the legal right to withhold them. Section 13A of the Pension Funds Act makes non-payment a criminal offence regardless of the reason.
What the Law Says
Your Legal Foundation
Pension Funds Act 24 of 1956
Section 13A — Obligations of employer in respect of retirement funds
“Section 13A requires every employer to pay all employee pension contributions deducted from salaries to the registered pension fund within seven days of the last day of the month in which they were deducted. Failure to do so constitutes a criminal offence for which the employer and every responsible officer can be held personally liable.”
Your employer cannot hold your deducted pension contributions for any reason — not cash flow, not a slow client, not business rescue. You have the right to demand written proof of payment and to report non-payment to the Financial Sector Conduct Authority (FSCA) and the South African Police Service.
What Scripture Says
God's Word on This
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“Look! The wages you failed to pay the workers who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty.”
God hears the cries of workers whose earnings are withheld. Pension contributions withheld after deduction is wage theft by another name — deducted from your pay but never reaching your fund.
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What They'll Say Next
Common Counter-Arguments
After you respond, they may push back with these arguments. Members get the full rebuttal for each.
They might say: “The employer pressures you to sign a letter saying you agree to delay pension payments as part of a 'business rescue arrangement', framing it as an act of loyalty to protect everyone's jobs.”
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They might say: “The pension fund tells you they cannot discuss your employer's payment status with you directly due to privacy and administrative rules.”
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Know Your Rights. Know Your Word.
389 South African law and Scripture scenarios — exact rebuttals, constitutional law, and Scripture. Practise out loud with audio. Free to start.