What is a provident fund and how does it work?

A provident fund is a system in which you invest while you are employed and receive benefits after you retire. This is a government-controlled compulsory retirement savings strategy for workers who can put a portion of their monthly savings into a retirement fund. The whole process is overseen by EPFO ​​(Employees Provident Fund Organization). Organizations with more than 20 employees are eligible for their PF and must register with EPFO.

In South Africa, a Provident Fund is a type of retirement fund that receives frequent contributions from both the employee and the employer. Before March 1, 2021, when you resigned or retired, you could take the entire sum as cash, which would be taxed. However, with the retirement reforms introduced on March 1, 2021, provident funds are now more similar to pension funds.

If you leave a company before you retire, for example when you resign or are retrenched, you may have to move your retirement savings out of the company fund. You can move your savings either to your new company’s fund, a preservation fund, or to a retirement annuity fund. You can take a cash payout, but you should be aware that this cash payout will be subject to tax.

The growth and income within your fund while you are a member of the fund are tax-free. Tax is only payable when you access your funds. When you retire, at age 55 or older, you’re allowed to take a maximum of one-third as a cash lump sum (the cash lump sum is taxable) from your retirement annuity. The balance must be used to purchase an income annuity (the income annuity is taxable). If the total amount in the fund is less than R247,500 you’re not limited to taking only 1/3 of your savings as a lump sum. You can take the full amount as a cash lump sum, subject to tax.

Your employer’s contribution to your retirement fund (pension fund or provident fund) is a fringe benefit taxed in your hands. Your contributions to your retirement fund plus your employer contributions to your retirement fund, are tax deductible up to certain limits. The growth and income within your fund while you’re a member of the fund is tax-free. Tax is only payable when you access your funds.


Overview of Public Universities in South Africa

Here's an overview of some public universities in South Africa, including general admissions requirements and estimated application periods. Keep in mind, specific program requirements and dates can vary significantly, so it's important to check each university's official website for the most current information.

University of Pretoria

  • Admissions Requirements: National Senior Certificate with minimum scores in specific subjects related to the chosen program; for international students, equivalent qualifications.
  • Application Period: Usually opens in March and closes at the end of July for most programs.

University of Cape Town

  • Admissions Requirements: National Senior Certificate with pass levels required for degree study; subject-specific requirements depending on the program.
  • Application Period: Application opens in April and closes at the end of July.

Stellenbosch University

  • Admissions Requirements: National Senior Certificate with required marks; some programs have additional testing.
  • Application Period: Opens in March and typically closes at the end of June.

University of the Witwatersrand

  • Admissions Requirements: Matriculation certificate with university exemption; required scores vary by faculty.
  • Application Period: Begins in March and ends on the 30th of September.

University of Johannesburg

  • Admissions Requirements: Matric exemption with a minimum APS score; specific subject requirements based on the faculty.
  • Application Period: Opens in April and generally closes by the 30th of September.

University of the Free State

  • Admissions Requirements: National Senior Certificate with specific marks for the program applied to; additional requirements for certain courses.
  • Application Period: Typically opens in April and closes at the end of August.

University of Venda

  • Admissions Requirements: Completion of the National Senior Certificate with an endorsement for diploma or degree studies; specific APS scores needed.
  • Application Period: Usually from May to September.

University of Fort Hare

  • Admissions Requirements: National Senior Certificate with university exemption; certain programs may have specific requirements.
  • Application Period: Opens around May and closes at the end of September.

University of the Western Cape

  • Admissions Requirements: National Senior Certificate with specific performance levels; additional requirements for certain programs.
  • Application Period: Generally from May to September.

North-West University

  • Admissions Requirements: National Senior Certificate with university exemption; program-specific requirements may apply.
  • Application Period: Opens in March and usually closes by the end of August.

Rhodes University

  • Admissions Requirements: National Senior Certificate or equivalent; minimum academic performance in certain subjects.
  • Application Period: Applications open in April and close at the end of September.

Nelson Mandela University

  • Admissions Requirements: National Senior Certificate with required scores for chosen programs; portfolio or additional tests for some faculties.
  • Application Period: Opens in April, with a deadline at the end of August for most programs.

Cape Peninsula University of Technology

  • Admissions Requirements: National Senior Certificate with specific scores; additional requirements for certain courses.
  • Application Period: Opens in May and typically closes by the end of September.

University of Limpopo

  • Admissions Requirements: Senior Certificate with endorsement for diploma or degree courses; specific APS scores for different programs.
  • Application Period: From April to September.

University of Zululand

  • Admissions Requirements: National Senior Certificate with an endorsement for bachelor’s degree studies; specific score requirements for various programs.
  • Application Period: Usually between April and November.

Central University of Technology

  • Admissions Requirements: National Senior Certificate with specific scores for the chosen field of study; additional criteria for certain programs.
  • Application Period: Application period generally starts in May and ends in October.

Vaal University of Technology

  • Admissions Requirements: National Senior Certificate with a pass that qualifies for admission to bachelor’s degree, diploma, or higher certificate programs.
  • Application Period: Typically from May to September.

Walter Sisulu University

  • Admissions Requirements: National Senior Certificate with required scores for chosen programs; additional criteria for certain faculties.
  • Application Period: From April to September.

This list provides a starting point for understanding the admissions landscape across South Africa's diverse higher education institutions. Given the variability in programs and requirements, it's crucial to consult each university's website for the most accurate and up-to-date information.

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