Billions of rand in employee benefits across South Africa remain unclaimed, often by workers who simply do not know the money is theirs.
According to the Financial Sector Conduct Authority (FSCA), unclaimed benefits in retirement funds alone amount to tens of billions of rand, affecting millions of former members and beneficiaries (FSCA Unclaimed Benefits Guidance).
The scale of the issue extends beyond retirement funds. In 2025, South Africans were yet to claim roughly R88 billion in financial assets (FSCA Commissioner Unathi Kamlana). This includes money owed from pensions, severance packages, and death benefits, amongst other.
The unclaimed funds are largely the result of people being unaware of their entitlements, outdated records, and inefficiencies in administration.
Within the motor industry, the message is clear: your work has earned you these benefits, and those benefits remain yours. Paulos Masemola, General Secretary of the Motor Industry Bargaining Council (MIBCO), says awareness is the first and most critical step.
“Many workers in our sector are not aware that they have money owed to them,” says Masemola. “Provident fund benefits, Additional Holiday Pay or AHP (paid leave funded by employer contributions, claimable annually, with any unused balance paid out if employment ends early), arrear wage payment or AWP (unpaid wages or benefits owed to an employee when an employer fails to pay the minimum required rates, increases, or benefits under the MIBCO main collective agreement, from the date they were due) and even death or ill-health benefits often go unclaimed simply because members are uniformed, changed contact details, or left the industry years ago.”
In the motor industry, the most common unclaimed benefits include Provident Fund benefits. These often relate to former members who left the industry some time ago, as well as deceased members whose families were unaware that funds were due. Another frequently unclaimed benefit is AHP. This benefit has required ongoing awareness campaigns to ensure employees understand their eligibility and the correct process for claiming it.
The retirement fund component is administered through the Motor Industry Fund Administrators (MIFA), which works closely with MIBCO to process claims and trace members.
Masemola points to several recurring reasons as to why workers do not claim. “The biggest barrier is lack of education and communication. Some employers have not adequately explained benefits. In other cases, members change contact details without notifying MIBCO and the fund. Foreign nationals may have documentation challenges. Sometimes, tragically, families do not even know a deceased member had benefits.”
Masemola shares exactly how the structured and transparent pay-out process works:
- Claim submission: Online or through MIBCO regional and satellite offices. Members must ensure all documents are correct, contact details are valid and that contributions have been processed.
- Processing and communication: Members receive SMS updates on progress.
- Fund administration: MIFA applies for a tax directive and conducts bank verification.
- Payment: Once approved, funds are paid directly to the member.
Typical timelines are approximately seven working days for AHP, 6 – 12 weeks for Provident Fund, 6 – 12 months for death claims and approximately 3 – 12 months for ill-health claims, Masemola adds.
With regards to the required documentation, he explains that claimants must submit a certified copy of their ID or passport, a bank confirmation letter or statement, their tax number, and fully completed claim forms together with any supporting documents. He further emphasises that there is no expiry date for submitting a claim.
“Unclaimed benefits can be claimed in perpetuity,” Masemola emphasises. “A member does not forfeit their benefit. However, we encourage members to apply within their notice period to prevent funds moving into the unclaimed benefits category.”
Behind every claim is a real person!
In one recent case, a member serving a prison sentence was assisted by MIBCO’s Eastern Cape regional office. Another instance saw a member’s provident fund benefit paid within two months, allowing him to cover urgent family needs, including funeral expenses for his father after services had twice been postponed.
In another case, a member diagnosed with leukaemia, shortly after purchasing her home, faced mounting medical bills and debt. With coordinated support between the regional office and the fund, her ill-health application was expedited. A formal letter confirming her pending pay-out enabled her to negotiate with creditors and stabilise her circumstances during treatment.
“These are not just transactions,” says Masemola. “These are moments where access to rightful benefits restores dignity and provides relief when it is needed most.”
MIBCO’s role is administrative and impartial. Every step of the process is communicated to both employer and employee via SMS, calls and email. To strengthen awareness, MIBCO is introducing digital and physical ‘welcome packs’ outlining benefits available to employees, thereby reinforcing transparency from the start of employment.
Employers also carry responsibility. “Employers must educate employees on their pay slips, maintain accurate records, pay and submit monthly contribution schedules or returns so that MIBCO can allocate contributions correctly, and support online claim submissions,” Masemola says. “Transparency protects both the employer and the worker.”
With millions of unclaimed retirement fund accounts nationally and billions of rand awaiting rightful owners, the message to motor industry employees is simple: “Ask questions. Request your benefit statements. Check your pay slip. Contact your HR department, MIBCO, or MIFA if you are unsure,” Masemola urges. “Your work has earned these benefits. They are not a favour; they are your right.”
In a sector built on skilled labour and long hours, ensuring workers access what they have earned is not just administrative diligence. It is economic justice.