© Master Builders KwaZulu-Natal 2017

 

The Association offers an Annual Leave Pay Scheme designed to protect your cash-flow and ease your year-end administrative burden.

Either weekly or monthly, you make a contribution towards each employee’s annual leave pay provision. Payment and administration is via our user-friendly and innovative stamp scheme (which also integrates with our Pension and Provident Fund schemes)

At the end of the year, the Association will pay your employee his or her leave pay, and refund you the interest earned on the money during the year!

HOW DOES IT OPERATE?

For each week that an employee works, his employer buys him a stamp. ( the "stamp is in fact an electronic unit, as all data is now computerised and the "stamp" terminology has been retained for simplicity and continuity of the terminology) The category of stamp which is purchased for the employee will depend on their hourly wage rate and what kind of benefit the employer wishes to give them. For example:

If a worker is paid R 5.00 per hour they would be bought a stamp which matches

that wage rate i.e. Category 110, 210, 310, 410 etc. (See attached schedule) The kind of stamp

they would be given, would depend on which series of stamp their employer selected.

There are 8 Series of stamps available at present:

Series 1: Which contain annual leave pay (15 working days).

Series 2: Which contain annual leave pay, holiday allowance, (15 working days plus a 7.5 working day holiday allowance. A total of 22.5 day pay)

Series 3: Which contain annual leave pay, holiday allowance (series 2) and KZN Retirement Fund contributions (series 6)

Series 4: Which contain annual leave pay, holiday allowance (series 2) and KZN Provident Fund contributions (series 5). See attached brochure on the Provident Fund.

Series 5: Which contain KZN Provident Fund contributions only.

Series 6: Which contain KZN Retirement Pension Fund contributions only.

Series A:Which contains annual leave (series 1) and KZN Provident Fund contributions (series 5)

Series B: Which contains annual leave (series 1) and KZN Retirement Fund contributions (Series 6)

Series 3, 6 contain contributions which continue the Pension Fund formerly covered by stamps purchased from the Building Industry, Industrial Councils for the Durban & Pietermaritzburg areas. These councils no longer exist in Kwazulu Natal. These Pension Funds, the Kwazulu-Natal Retirement Fund and the Midlands Building Industry Retirement Fund, are administered by the KwaZulu Natal Master Builders & Allied Industries Association. The Midlands Building Industry Retirement Fund is now a "closed fund" and no longer enrols active contributing members. All active contributing members are catered for in the KZN Retirement Fund.

Series 4 and 5 stamps contain Provident Fund contributions. The Provident fund is the KwaZulu Natal Provident Fund which is administered by the KwaZulu Natal Master Builders & Allied Industries Association.

The holiday pay value of each stamp is calculated so that 48 stamps will constitute a full year, i.e. an employee with 48 stamps will receive, at years end, a cheque which will be equivalent to 15 working days pay plus holiday allowance of 7.5 days, where appropriate.

The stamp year runs from November to October every year. Once an employer has purchased a full years stamps the Association issues a cheque in favour of each employee. Cheques are normally issued early in December so that employers can collect them from our offices in good time for the annual holidays.

The cheque amount will be for the full amount of holiday pay due against the stamps purchased. No income tax is deducted. It follows, therefore, that any income tax payable should be deducted from each employee at the time their stamp is purchased. This tax will be in respect of holiday pay only.

Stamps may be purchased on a weekly, two weekly or monthly basis in arrears; this can be done by means of a Stamp Requisition. The purchase requisitions are obtainable from the Associations offices in Westville, Pietermaritzburg, Empangeni and Margate.

INFORMATION REQUIRED

The information required is:

Your employee's names and initials

Their identity numbers

The category of stamp you wish to purchase for them

The week(s) for which you are purchasing the stamps.

PAYMENT

Payment must be made according to the specific item that is being purchased, i.e. the Holiday Pay portion must go into the Holiday Bank account, the Provident Fund portion into the Provident Fund bank account and the Retirement Fund portion into the Retirement Fund bank account

KwaZulu-Natal Retirement Fund Bank Account

First National Bank

Account No. 62034117110

Branch No. 221426 (Durban Main)

KwaZulu-Natal Provident Fund Bank Account

First National Bank

Account No. 50830012824

Branch No. 221426

KZN Holiday Pay Stamp Scheme

First National Bank

Account No. 50830743776

Branch No. 221426 (Durban Main)

IMPORTANT NOTICE TO EMPLOYERS

MASTER BUILDERS ASSOCIATION KWAZULU-NATAL

STAMP SCHEME 2009/2010

PAYMENT PROCEDURES AND ADDITIONAL SERIES A and B

To widen the choice available to Employers, 2 new stamp series, being Series A and Series B, have been implemented – see below.

Please remember that to comply with the Pension Fund Act, employers are required to forward separate payments for the respective funds and pay contributions directly to such funds. Payment can be made by means of Bank Deposit, Cheque Payments or Electronic Payments into the above mentioned accounts respectively.

These measures are aimed at helping to prevent the possible misallocation of members funds. Failure to pay retirement fund contributions directly to the correct fund accounts is an offence that can attract criminal liability.

NOTE

A TOTAL OF 48 CONTRIBUTIONS ARE REQUIRED DURING THE ANNUAL CYCLE TO PROVIDE THE FULL ENTITLEMENT OF 15 WORKING DAYS ANNUAL LEAVE.

Below is an explanation of how the Stamp Series have been split to ensure payments are paid into the correct bank accounts.

SERIES 1

Provides for Annual Leave Pay only, equal to 15 working days pay. (KZN MBA HOLIDAY PAY STAMP SCHEME, BANK ACCOUNT)

SERIES  2

Provides for Annual Leave Pay plus Holiday Allowance, equal to 22.5 working days pay. (KZN MBA HOLIDAY PAY STAMP SCHEME, BANK ACCOUNT)

SERIES  3

A combination series which provides for: Annual Leave Pay, Holiday Allowance (Series 2) (KZN MBA HOLIDAY PAY STAMP SCHEME, BANK ACCOUNT) and contributions to the Kwazulu Natal Retirement Fund (Series 6) (KWAZULU NATAL RETIREMENT FUND, BANK ACCOUNT)

SERIES  4

A combination series which provides for: Annual Leave Pay, Holiday Allowance (Series 2) (KZN MBA HOLIDAY PAY STAMP SCHEME, BANK ACCOUNT)

and contributions to the Kwazulu Natal Provident Fund (Series 5) (KWAZULU NATAL PROVIDENT FUND, BANK ACCOUNT)

SERIES  5

Provides for contributions to KwaZulu Natal Provident Fund only. (KWAZULU NATAL PROVIDENT FUND, BANK ACCOUNT)

SERIES  6

Provides for contributions to KwaZulu Natal Retirement Fund only. (KWAZULU NATAL RETIREMENT FUND, BANK ACCOUNT)

SERIES A

A NEW combination series which provides for: Annual Leave Pay, equal to 15 working days pay, (Series 1) (KZN MBA HOLIDAY PAY STAMP SCHEME, BANK ACCOUNT) and contributions to the Kwazulu Natal Provident Fund (Series 5) (KWAZULU NATAL PROVIDENT FUND, BANK ACCOUNT)

SERIES B

A NEW combination series which provides for: Annual Leave Pay, equal to 15 working days pay, (Series 1) (KZN MBA HOLIDAY PAY STAMP SCHEME, BANK ACCOUNT) and contributions to the Kwazulu Natal Retirement Fund (Series 6) (KWAZULU NATAL RETIREMENT FUND, BANK ACCOUNT)

DETAILS OF ALL THE SERIES AND THE WAGE BANDS THEY COVER, ARE SHOWN IN THE ATTACHED SCHEDULES.

PLEASE NOTE

PAYMENT FOR PUBLIC HOLIDAYS IS NOT INCLUDED IN THE ANNUAL LEAVE PAY SCHEME.

PUBLIC HOLIDAY PAY IS PAYABLE BY EMPLOYERS TO EMPLOYEES DIRECTLY WHEN THEY OCCUR.

ALL PUBLIC HOLIDAYS WHICH FALL ON A NORMAL WORKING DAY ARE PAID PUBLIC HOLIDAYS. WHEN A PUBLIC HOLIDAY FALLS ON A SUNDAY, THE MONDAY FOLLOWING WILL BECOME THE PUBLIC HOLIDAY.

PAYWEEK DATES 2010/2011, Click here

Retirement Funds