Notwithstanding some very loud objections to recent legislation on pension and provident funds, which will come into effect on 1 March, the new laws should result in more money in the pockets of over 1m South Africans.
While pension fund members will hardly notice the effect, the amendments contained in the two acts – the 2015 Tax Administration Laws Amendment Act No. 23 of 2015 and Taxation Laws Amendment Act No. 25 of 2015 – will be largely positive for members of provident funds.
According to Treasury, there are over 2.5m provident fund members and 1.25m of them are likely to see an increase in their take-home salaries.