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Thread: TCTC question

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    TCTC question

    I have number of union members who are paid TCTC and required to arrange for their own investment plan, medical aid, etc. In the course of the employment the have made arrange with one of the big investment profile company. The Investment Company with arrangement of their employers to deduct their investment in the following categories
    1. 7.5% of TCTC included Employers contribution 1.5%
    2. 10% of TCTC included Employers contribution 2.5%
    3. 15% of TCTC included Employers contribution 7.5%
    However there is a clause in the Remuneration Policy “The above total cost to company remuneration scale include the basis salary and does not reflect all company contribution in respect of the Pension Fund, Medical; Aid and Unemployment Insurance fund”
    It is the argument of employees that the company is not contributing anything o the pension and therefore they should not reflect the 1.5, 2.5.7.5 as they company contribution.
    Here are the challenges; as a result of company reflecting their contribution which is not reflected on the IRP and it is paid to the Pension scheme after deduction Reflected on the payslip. This has nullified the employee’s individual contribution to their respective Retirement Annuity. As representing the members what should be done to remedy the situation.
    • Can I argue that the company should make equal contribution to all members regardless of the employee’s choice 1 or 2 or 3?
    • Can one request the company to reflect their contribution as employee’s voluntary contribution?
    • What are solution is the employees have?

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    Site Caretaker Dave A's Avatar
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    Although I've moved this into the Labour Relations forum, I suspect the answers really depend on a variety of issues.

    From a labour relations point of view:
    • Can I argue that the company should make equal contribution to all members regardless of the employee’s choice 1 or 2 or 3?
    The theory behind TCTC is the employee is given the latitude to structure their pay package to be the most effective for them and what they want their money to go to without affecting the total cost to company. If you standardise the portion reflected as "company contribution" to one-size-fits-all, all you're doing is reducing the employees' options. So I gently suggest this might not be worth pursuing.

    • Can one request the company to reflect their contribution as employee’s voluntary contribution?
    Given that we're talking a TCTC environment here, the question probably is not so much whether you can request this, but more whether it is advisable. This is where the investment/tax gurus need to give some input, I think.
    The trouble with opportunity is it normally comes dressed up as work.

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