Employee Benefit Solution

We partner with businesses to design, develop and implement customised Employee Benefit Solutions that strengthen workforce retention, increase employee satisfaction and support organisational growth. Effective employee benefits are a vital component of modern talent management, helping organisations attract high‑calibre employees while reinforcing a culture of security and loyalty. Our services include retirement funds, group risk products, medical insurance solutions and financial wellness initiatives tailored to your workforce. By integrating compliance, affordability and long-term value, we help businesses create benefit packages that meet the needs of both employers and employees while supporting strategic HR objectives.

Pension/Provident Fund & Group Retirement Annuity

As of 1 September 2024, all three are structured the same. They consist of two components:

  • Retirement Component: Locked until retirement age.
  • Savings Component: Accessible once per year, minimum withdrawal R2,000.

Contributions are typically shared. The employer contributes a percentage of the employee’s salary, and employees contribute a portion too. The exact percentages depend on your company’s policy.

Yes, within regulatory limits. Employers can set contribution structures that align with company policy and employee needs.

It helps employees plan for the future, improves financial wellness, and offers tax advantages for both employer and employee.

Yes. Contributions to these funds are tax-deductible up to certain limits, and growth within the fund is tax-free until withdrawal.

Group Life Cover, Disability, Severe Illness, Funeral Cover

It’s a lump-sum payout to an Employee’s nominated beneficiaries if they pass away while employed.

The policy covers Group Life Cover, Trauma/Severe Illness, Disability Income, and Family Funeral Cover. There are conversion options, accident boosters, and escalation features. Free cover limits apply to each benefit.

This benefit pays for tuition and related costs for children of employees who pass away, covering pre-school to tertiary education, with annual and period maximums per child.

They may receive a lump-sum disability benefit if permanently disabled. If they are unable to work, Income Protection (PHI) provides a monthly income.

It pays out a lump sum upon diagnosis of a serious illness like cancer, stroke, or heart attack.

A quick payout to assist with funeral expenses, usually within 48 hours of claim approval.

They provide financial protection for employees and their families, enhancing employee wellbeing and loyalty.

Lump-sum benefits may be subject to tax depending on the type and amount. Monthly income protection is usually taxed as income.

Employers may fully fund, co-fund, or deduct premiums from employee salaries, depending on the benefit structure.

Yes, many employers offer tiered benefits based on job grade or tenure.

Yes, employees who leave after 12 months can convert their Group Life Cover to a personal policy and continue paying premiums.

You have access to 24-hour assistance for trauma, assault, and HIV support for yourself, your spouse, and children.

Medical Insurance Schemes

Medical insurance is more affordable and covers specific events (e.g., hospital stays), while medical aid offers comprehensive cover including day-to-day expenses.

It’s more affordable and accessible for employees who can’t afford full medical aid. It still provides essential healthcare coverage.

Yes. Group schemes of 10 or more members often come with discounted premiums and better benefits.

Access to healthcare improves productivity, reduces absenteeism, and supports overall wellness.

Employer contributions may be taxed as a fringe benefit.

Medical Aid

What is the most common subsidy rate for medical aid? Subsidy rates vary, but common contributions are:

  • 50% (most popular)
  • 30% to 66% depending on company affordability

CTC integrates medical aid contributions into the employee’s total remuneration. This means:

  • The employee bears any above-inflation increases
  • The employer’s cost remains fixed

Yes, but it must be clearly documented and legally compliant. Transparency is key to avoid disputes

Employees may continue on the scheme privately, but employer contributions cease unless otherwise agreed

Yes. Most schemes allow for spouses, children, and financially dependent family members to be added

These are structured financial benefits provided by employers, such as:

  • Retirement funds
  • Group insurance
  • Medical-related financial solutions

They help:

  • Attract and retain talent
  • Improve employee satisfaction
  • Strengthen company culture
  • Reduce employer liability to family members of employees

Yes. Solutions are tailored to:

  • Company size
  • Industry
  • Employee needs
  • Employer budgets

Yes. Pinion can review, optimise, or redesign existing programmes.

They can be structured to fit different budgets, with long-term value outweighing costs.

Employees gain:

  • Financial security
  • Access to structured savings
  • Protection for themselves and their families against risks

Speak to one of our experts

Pinion SA Wealth Director | Retirement Planning, Investment Planning, Offshore Planning, Employee Benefit Solutions, Risk Planning

Bruce Brown

Bruce Brown - CFP - Managing Director - Pinion Wealth SA - FSP No: 50374

bruce.brown@pinionza.com

+27 (0)72 081 8382

Download Employee Benefit Solutions FAQ PDF
Download Employer FAQ PDF
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