In the wake of the COVID-19 pandemic and the ensuing lockdown, the National Bargaining Council wish to inform you of the decisions made between the parties and the Council in terms of the May 2020 accounts.
Pension Fund Contributions
No contributions for the month of May 2020 will be charged. Employees' benefits will remain intact.
Critical Illness and Funeral Cover
The Critical Illness Benefit (R 8.92 per month per employee) and the Funeral Cover (R 9.50 per month per employee which is an added benefit through Hollard, is currently funded from the employer’s portion of the contributions towards the fund.
The decision was made to not charge these two premiums for May 2020.
To ensure the cover for employees remains in place, the April 2020 and May 2020 contributions will be recouped from the employer’s portion of the monthly contribution during June 2020 to October 2020.
What this effectively means is that for these months that the employers portion contributed towards the employees’ pension fund will reduce with the arrears.
The recoupment will look as follows:
This will not result in any additional charges being levied against the employer or the employee during June 2020 to September 2020.
Please note that claims arising during this period, will only be paid once all arrears are up to date. Each case will however be negotiated with Hollard on an individual basis
Sick Pay Fund
The Sick Pay Fund will grant the industry a payment holiday on all Sick Pay Fund contributions for the month of May 2020.
This payment holiday will not affect the claims process and benefits will remain intact.
All claims for the month of May 2020 will be honoured should all the required documentation be submitted and contributions for March 2020 has been paid.
Sick Benefit Fund
The Sick Benefit Fund will grant the industry a payment holiday on all Sick Benefit Fund contributions for the month of May 2020.
This payment holiday will not affect the claims process and benefits will remain intact.
All claims for the month of May 2020 will be honoured should all the required documentation be submitted and contributions for March 2020 has been paid.
Council Levies
Council Levies for May 2020 will be charged at a rate of 30% of the normal levies.
This will be applicable for May 2020.
Union Fees
The Union fees will still be levied for the month of May 2020 as per usual.
This is to ensure the employees’ benefits remains intact.
EOHCB Fees
EOHCB Full membership will be charged at R 280.00 for May 2020.
Afro & Telephonic members will be charged at R 180.00 for May 2020.
It has also been agreed to that any charges raised for April 2020 and May2020 as per the above will be payable over a period of 6 months subject to reconciled defined payments received from the establishment.
Please note that the Union indicated that the Union fees for April 2020 and May 2020 should be payable over a period of 3 months.
Please stay safe everyone!
For any queries please contact your local Council agent who will gladly assist.
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