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Delay in back-pay payout

An indication received from the employer is that the back pay of the 0,6% (as part of the cost of living adjustment - with effect from 1 April 2015) and the back pay of the improved medical subsidy (with effect from 1 January 2015), will NOT be effected in July 2015, but  at the earliest in August 2015. This also applies to the adjustment of the housing allowance that was to come into effect on 1 July 2015.

As far as the back pay on the medical subsidy for GEMS members is concerned, it will be paid to employees directly, subject to the normal tax provisions. In the case of former employees, where the subsidy is paid by the GEPF, the back pay on the subsidy will be paid to the relevant medical scheme (GEMS and open schemes) that will then obviously have to decide how to deal with it.

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