Employee Provident Fund (EPF) is a collection of funds that both the employer and the employee contribute every month. It is a scheme that provides financial support to all salaried individuals post-retirement.
EPF is a retirement benefit plan and aims to ensure a financially independent retirement.
Provident Fund Withdrawal PF money can be fully withdrawn only after retirement and not when working except under some conditions. If a person is unemployed, he can withdraw 75% of the PF deposit after one month of unemployment and the remaining 25% after two months. PF can be withdrawn 2 or 3 times on a non-refundable basis.
The amount you will get from your Provident Fund in South Africa depends on several factors:
Contributions: The amount you and your employer have contributed to the fund over time.
Investment Growth: The growth of your investment is based on the fund’s performance.
Vested and Non-Vested Portions: Any contributions made to your provident fund before the 1st of March 2021, including the growth thereon, are deemed to be the ‘vested’ portion of your provident fund and will not be subject to the 2/3rds rule. However, from the 1st of March 2021, provident fund members who are younger than 55 years of age will see any further contributions on or after 1 March, and the growth thereon, deemed as the ‘non-vested’ portion of their fund, the value of which will be subject to the 2/3rds rule upon retirement.
Age: If you are 55 years or older at the 1st of March 2021, you will not be subject to the new rules for provident funds, regardless of whether further contributions are made from the date the amendments came into force1. This means you are allowed to withdraw the entire value of the fund as a lump sum, provided that any further contributions are made to the existing provident fund.
Practical examples of the new provident fund rules
Tax year 2024: Retirement & Death Benefits or Severance Benefits
| Taxable income (R) | Rate of tax (R) |
|---|---|
| 1 – 500 000 | 0% of taxable income |
| 500 001 – 700 000 | 18% of taxable income above 500 000 |
| 700 001 – 1 050 000 | 36 000 + 27% of taxable income above 700 000 |
| 1 050 001 and above | 130 500 + 36% of taxable income above 1 050 000 |
Mr. Smith is currently 55 years of age and has been a member of the ABC provident fund for the past 30 years. He plans to retire at the end of this year.
At retirement Mr. Smith’s provident fund is valued at R2,150,000. Under the new rules, he would still be able to withdraw the entire fund value as a lump sum, which would then be subject to tax as per the above table.
Mr. Smith decides to push out his retirement age to 65. On the 1st of March 2021, his provident fund is valued at R2,150,000 and he and his employer each contribute a monthly amount of R4,000 towards the ABC provident fund. At retirement, his estimated fund value is R5,378,352 assuming an 8% return per annum.
At retirement Mr. Smith will be able to withdraw the entire value as a lump sum, subject to tax, as he did not leave the ABC provident fund.
Mr. Smith still plans to retire at 65. On the 1st of March 2021, his ABC provident fund is valued as per the previous example. But instead of staying with ABC, he moves to XYZ provident fund where he also contributes R4,000 per month until his retirement.
Mr. Smith would be able entitled to withdraw the entire fund value of R4,641,689 he accumulated with ABC provident fund (the R2,150,000 plus growth) as a lump sum vested portion, again subject to tax.
His accumulated fund value with XYZ provident fund of R736,666, which would be classified as non-vested, would then be subject to annuitisation and he would only be able to withdraw 1/3rd of the fund value as a lump sum, with the remaining 2/3rds used to purchase an annuity.
Overview of Public Universities in South Africa
Here's an overview of some public universities in South Africa, including general admissions requirements and estimated application periods. Keep in mind, specific program requirements and dates can vary significantly, so it's important to check each university's official website for the most current information.
University of Pretoria
- Admissions Requirements: National Senior Certificate with minimum scores in specific subjects related to the chosen program; for international students, equivalent qualifications.
- Application Period: Usually opens in March and closes at the end of July for most programs.
University of Cape Town
- Admissions Requirements: National Senior Certificate with pass levels required for degree study; subject-specific requirements depending on the program.
- Application Period: Application opens in April and closes at the end of July.
Stellenbosch University
- Admissions Requirements: National Senior Certificate with required marks; some programs have additional testing.
- Application Period: Opens in March and typically closes at the end of June.
University of the Witwatersrand
- Admissions Requirements: Matriculation certificate with university exemption; required scores vary by faculty.
- Application Period: Begins in March and ends on the 30th of September.
University of Johannesburg
- Admissions Requirements: Matric exemption with a minimum APS score; specific subject requirements based on the faculty.
- Application Period: Opens in April and generally closes by the 30th of September.
University of the Free State
- Admissions Requirements: National Senior Certificate with specific marks for the program applied to; additional requirements for certain courses.
- Application Period: Typically opens in April and closes at the end of August.
University of Venda
- Admissions Requirements: Completion of the National Senior Certificate with an endorsement for diploma or degree studies; specific APS scores needed.
- Application Period: Usually from May to September.
University of Fort Hare
- Admissions Requirements: National Senior Certificate with university exemption; certain programs may have specific requirements.
- Application Period: Opens around May and closes at the end of September.
University of the Western Cape
- Admissions Requirements: National Senior Certificate with specific performance levels; additional requirements for certain programs.
- Application Period: Generally from May to September.
North-West University
- Admissions Requirements: National Senior Certificate with university exemption; program-specific requirements may apply.
- Application Period: Opens in March and usually closes by the end of August.
Rhodes University
- Admissions Requirements: National Senior Certificate or equivalent; minimum academic performance in certain subjects.
- Application Period: Applications open in April and close at the end of September.
Nelson Mandela University
- Admissions Requirements: National Senior Certificate with required scores for chosen programs; portfolio or additional tests for some faculties.
- Application Period: Opens in April, with a deadline at the end of August for most programs.
Cape Peninsula University of Technology
- Admissions Requirements: National Senior Certificate with specific scores; additional requirements for certain courses.
- Application Period: Opens in May and typically closes by the end of September.
University of Limpopo
- Admissions Requirements: Senior Certificate with endorsement for diploma or degree courses; specific APS scores for different programs.
- Application Period: From April to September.
University of Zululand
- Admissions Requirements: National Senior Certificate with an endorsement for bachelor’s degree studies; specific score requirements for various programs.
- Application Period: Usually between April and November.
Central University of Technology
- Admissions Requirements: National Senior Certificate with specific scores for the chosen field of study; additional criteria for certain programs.
- Application Period: Application period generally starts in May and ends in October.
Vaal University of Technology
- Admissions Requirements: National Senior Certificate with a pass that qualifies for admission to bachelor’s degree, diploma, or higher certificate programs.
- Application Period: Typically from May to September.
Walter Sisulu University
- Admissions Requirements: National Senior Certificate with required scores for chosen programs; additional criteria for certain faculties.
- Application Period: From April to September.
This list provides a starting point for understanding the admissions landscape across South Africa's diverse higher education institutions. Given the variability in programs and requirements, it's crucial to consult each university's website for the most accurate and up-to-date information.