© 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 20.00 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 which contain:

Series 1: Annual leave pay (15 working days).
Series 2: Annual leave pay, holiday allowance, (15 working days leave plus 7.5 working days holiday allowance. A total of 22.5 days pay).
Series 3: Annual leave pay, holiday allowance (series 2) and KZN Retirement Fund contributions (series 6).
Series 4: Annual leave pay, holiday allowance (series 2) and KZN Provident Fund contributions (series 5).
Series 5: KZN Provident Fund contributions only.
Series 6: KZN Retirement Pension Fund contributions only.
Series A:Annual leave (series 1) and KZN Provident Fund contributions (series 5)
Series B: Annual leave (series 1) and KZN Retirement Fund contributions (Series 6)

Series 3, 6 and B stamps contain Pension Fund contributions. This Pension Fund is theKwaZulu Natal Retirement Fund which is administered by the KwaZulu Natal Master Builders & Allied Industries Association.

Series 4, 5 and A 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 year end, a payment 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 stamps for a full year the Association will pay each employee, normally in December.

The payment 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 stamps are purchased.

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, Newcastle 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

Payments must be made according to the specific items that are being purchased. The Holiday Pay portion must be depositedinto the Holiday Pay 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)

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.

Retirement Funds