Answer to a question from a reader

Why was my provident fund not paid out after I relocated and got a new job?

The short answer

If you still work in the same industry, you still need to contribute to the provident fund.

The whole question

I resigned from my job in Port Elizabeth. I filled and submitted all the forms for exiting Mibco provident fund. I borrowed money to relocate to Gauteng because my wife got a job there, so I resigned from my job in middle September to move with our family and get my provident fund. I was waiting for my payment for a month while also looking for a new job. I found one on 12 October with a probation period of 3 months.

Now, my first payment was deducted from my salary in Gauteng. They say that because I am working now, they can't pay me my provident fund. I changed provinces and I waited so long. Surely there must be a way for me to get the money?

The long answer

The reason that you have not been paid out your provident fund from your employment in Eastern Cape is that the Auto Workers and Motor Industry Provident Funds are compulsory funds under Mibco, the Motor Industry Bargaining Council, and are industry funds. That means that even if you have left one employer in Eastern Cape and have got a new employer in Gauteng, you will still be covered by the same provident fund as long as you are still working in the motor industry, and you will still be required to contribute to the provident fund. 

Answered on Nov. 10, 2020, noon

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