419 Transport Companies Exposed for Failing to Pay Workers’ Pension Contributions

Thousands of transport workers across South Africa, including truck drivers, mechanics and warehouse staff, could face severe financial loss at retirement because their employers are not paying over pension fund contributions as required by law.

The Financial Sector Conduct Authority (FSCA) has published a new report naming 5 821 employers that have failed to transfer employees’ pension deductions to retirement funds. Among them, 419 are companies linked to the Transport Sector Retirement Fund (TSRF) — one of the most important funds for the road freight and logistics industry.

What the law says

Section 13A of the Pension Funds Act is very clear: when an employer deducts money from a worker’s salary for retirement, that money must be paid into the relevant pension fund within seven days after the end of the month.

The FSCA report shows that hundreds of transport companies are breaking this law. They deduct the contributions from payslips but never pass the money on. In many cases, the funds remain with the company — while workers believe they are saving for the future.

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Why this matters for you

The consequences of unpaid pension contributions are serious and immediate:

• Your retirement savings could end up being far less than what you expect.
• Your death, disability, and funeral benefits could be cancelled because your membership is no longer active.
• You could be told there is “no money” when you try to withdraw under the two-pot system or when you resign.

Imagine this: You’ve been behind the wheel for 20 years, watching pension deductions come off your payslip every month. You’re counting on that money for retirement, believing it’s safe and growing. But when the time comes to withdraw, you’re told there’s nothing there — because your employer never paid the money to the fund. That is the reality facing thousands of workers in the transport industry today.

Read: Understanding the Two-Pot System for South African Truck Drivers

A growing national crisis

The FSCA report paints a worrying picture:

• R7.23 billion in total is owed to pension funds nationwide.
• Of this, R2.98 billion is late payment interest (LPI) — compensation for the investment growth members have lost because of delayed payments.
• The number of employers in breach has grown by 50% since December 2023.

This sharp rise is partly due to more accurate reporting and the inclusion of large funds such as the Auto Workers Provident Fund and the Motor Industry Provident Fund. But the transport sector remains one of the most affected industries — with 419 companies alone responsible for millions in unpaid retirement contributions that affect thousands of truckers and logistics workers.

What’s being done

The FSCA acknowledges that it has limited powers to act directly against employers. Its main tool is to name and shame non-compliant companies. This public exposure puts pressure on them to settle outstanding amounts.

The regulator is also working closely with the police and other government agencies. Since December 2023, more than 1 000 cases of non-payment have been reported to the South African Police Service (SAPS) — a major increase from just 113 cases before then. Pension funds themselves are now more proactive in laying criminal charges and reporting employers to credit bureaus.

What you need to do now

Truckers and transport workers must take steps to protect their retirement savings:

• Check the list: The full list of defaulting employers — including the 419 transport companies — is available on the FSCA website. Search for your company’s name.
• Ask for proof: If your employer appears on the list or if you are unsure, request a written benefit statement from your pension fund or HR department.
• Report suspected non-payment: If you suspect your contributions are not being paid, report it directly to your pension fund. They have the legal power to act.

Your pension money belongs to you. It is not a loan to your employer, and they have no right to withhold it. By staying informed and asking the right questions, you can protect your future and make sure that years of hard work behind the wheel pay off when you retire.

Don’t wait until it’s too late. Check today whether your employer is one of the 419 transport companies listed by the FSCA here.