Domestic Worker - Absa Provident Fund for Home Employees

absa Home Employees (Domestic Workers) provident fund

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Domestic Worker - Absa Provident Fund for Home Employees
This unique Provident Fund from Absa offers Home Employees (Domestic Workers - home owners and body corporate's) - Retirement, Withdrawal, Disability and Funeral Benefits in one package


Please take note that the Absa Home Employees Provident Fund has been incorporated in the Absa Small Business Provident Fund.

Home Employees and Small Business Provident Fund - Absa Logo

Benefits for you, the employer

  • Retain your valuable employee
    Employee benefits minimize the risk of losing valuable employees. You can be assured of keeping your employees and being able to offer an attractive, competitive package to new employees.
  • Tax
    The employer's contribution to the fund is tax deductible to a maximum of 20% of the total salary roll.
  •  

    Please take note:
    In order for the employer to qualify for tax relief, the employees must be in the employment of a registered business. 

  • Peace of mind
    The responsibilities of the employer in respect of his employees at retirement and unforeseen death or disablement are automatically reduced as this is now taken care of by a tailor-made specialist fund.
  • Transferable benefits
    The accumulated benefits of members are transferable between employers, or to another approved fund.
  • Ease of payment
    Contributions are levied monthly in advance, and to make life easier for you, these are done by debit order. The single contribution covers all the benefits of the fund, including those offered through the separate group schemes.

Click here for more absa home employees (domestic workers) provident fund information and how to apply

Benefits for the employee (Domestic Worker)

  • Retirement Benefit
    At retirement, at any age between 55 and 70, the member will receive the equitable share (net contributions plus interest) in the fund as a lump sum or, if preferred, a portion or the full value paid by means of a monthly pension.
  • Resignation Benefit
    Upon termination of service the member's risk benefits, i.e. death, disability and funeral cover, will cease. The member is entitled to the equitable share in the fund (nett contributions plus interest) and this benefit can be taken in cash or it can be transferred to a Preservation Provident Fund or a Retirement Annuity. Alternatively the equitable share can be transferred to another fund offered by the new employer.
  • Death Benefits
    In the event of death before retirement, the member's dependents and/or beneficiaries will receive a cash benefit. The cash benefit will consist of the death and funeral cover offered by the chosen plan as well as the equitable share in the fund (nett contributions plus interest). Death cover is provided without any medical examinations until age 65. In the event of the death of a member's spouse or child (under the age of 21), a funeral benefit will be payable to the member according to the applicable option.
    Waiting period applicable to death benefits
    All new members joining The Absa Home Employees Provident Fund will be covered for death and funeral benefits but only after three months continuous membership if the cause of death was natural.  In the event of accidental death, the benefit is payable immediately. This waiting period is designed to protect the members of the fund by managing the payment of the benefit. Should a death claim thus arise due to natural causes within the first three months of membership, the death benefit will not be payable.
  • Total and permanent disability
  • All new members joining The Absa Home Employees Provident Fund will be covered for disability benefits only after a period of six months if the natural causes are not pre-existing medical conditions.  In the case of a benefit due because of accidental causes, this period is three months.  This waiting period is designed to protect the members of the fund by managing the payment of the benefit. Should a disability claim arise due to natural causes within the first six months of membership, the benefit will not be payable.
    Should your employee become permanently disabled before the age of 65, he/she will receive a cash benefit equal to the total of the disability cover offered by the chosen plan on approval of the claim by the insurer as well as the equitable share in the fund (net contributions plus interest). If the onset of disability occurs within 5 years prior to the member’s attainment of age 65, the amount payable will be reduced by 20 percent of the disability benefit offered by the chosen plan, for each year or part thereof by which the onset of such disability precedes the member's 65th birthday.
  • Waiting period
    A waiting period of six months will apply for the payment of the disability benefit after the date of disablement.
  • Important note in respect of the death and disability benefits (Risk Cover)
    Should a monthly premium not be received in any one month, Absa Consultants & Actuaries will issue a letter of warning that the risk cover will terminate if the overdue premium is not paid through a double debit in the following month. If the double debit is rejected, Absa Consultants & Actuaries will then issue an off risk letter, members will then not be covered for death, disability or family funeral benefits. If arrear premiums are subsequently received, the member will be subject to a waiting period from the date the premium is received before benefits will be paid.
  • War and Riot Exclusions
    There is a war and riot exclusion and terms and conditions may vary from time to time. Please contact the fund administrator for details in this regard.
  • Communication
    A member will be issued with a membership certificate once the first contribution has been made. Every member will receive an annual benefit statement, which will reflect the member’s equitable share in the fund, and the cover for death, disability and family funeral benefits under the associated separate group schemes. The benefit statements will be forwarded to the participating employer for distribution amongst employees. A circular including aspects of importance will also be sent to participating employers on an annual basis at the same time as the annual benefit statements.

Click here for more absa home employees (domestic workers) provident fund information and how to apply

Benefit and Contribution Structure

Please note: The Absa Small Business Provident Fund fees/contributions will change from 1 July 2017, starting from a minimum contribution of R230.00 p.m
Plan
SM1
SM2
SM3
SM4
SM5
SM6
SM7
SM8
SM9
SM10
Contribution p.m.
R230.00
R230.00
R310.00
R450.00
R620.00
R780.00
R1070.00
R1500.00
R1850.00
R2500.00
Death Cover
-
R15 000
R25 000
R50 000
R55 000
R75 000
R100 000
R150 000
R200 000
R220 000
Capital Disability Cover
-
R15 000
R25 000
R50 000
R55 000
R75 000
R100 000
R150 000
R200 000
R220 000
Funeral:
-
Member
-
R12 500
R15 000
R15 000
R15 000
R15 000
R15 000
R15 000
R15 000
R15 000
Spouse
-
R12 500
R15 000
R15 000
R15 000
R15 000
R15 000
R15 000
R15 000
R15 000
Child 14 - 21
-
R6 250
R7 500
R7 500
R7 500
R7 500
R7 500
R7 500
R7 500
R7 500
Children 0 - 13
-
R4 375
R5 250
R5 250
R5 250
R5 250
R5 250
R5 250
R5 250
R5 250
Total cost
R25.11
R61.46
R80.57
R114.55
R129.44
R150.24
R176.24
R228.24
R280.24
R301.04
Net Retirement savings
R204.89
R168.54
R229.43
R335.45
R490.56
R629.76
R893.76
R1271.76
R1569.76
R2198.96
SM1 = Investment only
Minimum Contribution and Separate Scheme Structure as from 1 July 2017 - 30 June 2018

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Click here for more absa home employees (domestic workers) provident fund information and how to apply

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Absa Home Employees Provident Fund