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Post Office fails to pay into employees’ retirement fund for three years – Raising concerns



Post Office failed to pay employees' retirement funds

According to recent reports, the South African Post Office failed to pay employees’ retirement funds for three years. The Post Office Retirement Fund, a defined contribution fund, requires workers and employers to make regular contributions. However, SAPO last paid the workers’ contributions to the fund in April 2020. GroundUp reports that the SAPO was ordered by the Supreme Court of Appeal (SCA) in December 2021 to settle the arrears, along with interest, within five days. Despite this judgment, the outstanding contributions and subsequent ones have remained unpaid.

SAPO’s failure to fulfil its financial obligations also extends to other areas. For example, the Department of Communications and Digital Technologies confirmed that SAPO had not paid unemployment insurance funds or medical aid contributions. In addition, the accumulated debt has raised concerns about the risk to workers’ pension benefits if SAPO undergoes liquidation.

The exact amount owed by SAPO to the retirement fund is not available for the public to know. SAPO spokesperson Suzie Khumalo declined to provide details, citing ongoing court proceedings. However, based on the SCA’s findings, the shortfall from early 2020 alone would amount to R1.44 billion over three years. With over 3,000 staff members having left during that time, the authorities believe the estimated debt to the Post Office Retirement Fund is R1 billion.

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The uncertainty surrounding the situation has taken a toll on employees. Workers express frustration and anxiety as they face the potential loss of pension benefits. One Cape Town post office worker highlighted that there are still deductions for pension contributions from their salary. Still, they have received no communication regarding the resumption of payments or a resolution. Many others who fear the financial implications of the Post Office’s possible liquidation share the worker’s concern, unsure if they will regain their contributions and uncertain about their future employment prospects.


As SAPO’s financial statements reveal total liabilities exceeding total assets by R4 billion, the situation remains bleak. Workers are exhausted and distressed, grappling with economic challenges caused by salary cuts. The prospect of unemployment further exacerbates their worries, particularly for those with limited job opportunities.

The uncertainty surrounding the resolution of this issue casts a shadow on the workers’ futures and emphasises the urgent need for SAPO to address its financial obligations. Employees face potential long-term consequences threatening their financial security and stability without properly paying retirement fund contributions.

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Picture: Twitter / _AfricanSoil

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