Answer to a question from a reader

I resigned my job months ago but I still haven't received my provident fund payout. What can I do?

The short answer

If you belong to a bargaining council fund it can take up to six months.

The long answer

Thank you for your email asking why your provident fund has not yet paid you out after you resigned in June.

It does seem like a very long time to wait for your provident fund. Normally it should not take more than 4 to 8 weeks, if your tax affairs are in order, but if you belong to a bargaining council fund, there is usually a compulsory waiting period which can be up to six months long.

The process of paying out your provident fund only starts once the provident fund administrator has received your final contribution as well as the fully completed withdrawal forms and copy of your ID. The administrator sends it to SARS and SARS sends back a tax directive telling them how much tax must be withheld from your payment.

Answered on Oct. 24, 2019, 3:51 p.m.

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