Millions in unclaimed cash: Are you owed money by the motor industry?

While South Africa grapples with a cost-of-living crisis, a staggering R88 billion in financial assets remains unclaimed nationwide. For workers in the motor industry, a significant slice of that pie is sitting in dormant accounts, waiting for its rightful owners to step forward.

From mechanics to dealership staff, thousands of employees are currently unaware that they are owed money for pension funds, severance packages, and "hidden" benefits like Additional Holiday Pay (AHP).

According to the Financial Sector Conduct Authority (FSCA), unclaimed retirement benefits alone have reached "tens of billions of rand." Within the motor industry, these funds are often left untouched because workers move jobs, change phone numbers, or simply weren't told the money existed.

Paulos Masemola, General Secretary of the Motor Industry Bargaining Council (MIBCO), says awareness is the biggest hurdle.

"Many workers in our sector are not aware that they have money owed to them," Masemola says.

"These benefits often go unclaimed simply because members are uninformed, have changed contact details, or left the industry years ago."

It isn’t just about pensions. The motor industry has specific benefits that often slip through the cracks:

• Provident Fund Benefits: Often left behind by former employees or deceased members whose families are unaware of the entitlement.
• Additional Holiday Pay (AHP): This is paid leave funded by employer contributions. If you leave a job early, any unused balance must be paid out to you.
• Arrear Wage Payments (AWP): These are unpaid wages or benefits owed when an employer fails to pay the minimum required rates under MIBCO agreements.
• Death and Ill-Health Benefits: Critical lifelines that many families fail to trigger during times of crisis.

These aren't just figures on a spreadsheet; for many, these payouts are life-changing. In one recent case, a worker diagnosed with leukaemia was able to save her new home after MIBCO expedited her ill-health application. The formal confirmation of her payout allowed her to negotiate with creditors while undergoing treatment. In another instance, a member used his provident fund payout to finally bury his father after funeral services had been postponed twice due to a lack of funds.

“These are not just transactions," says Masemola. "These are moments where access to rightful benefits restores dignity and provides relief when it is needed most."

The good news is that unclaimed benefits never expire. You can claim them "in perpetuity," though Masemola encourages workers to apply during their notice period to avoid the funds moving into the "unclaimed" category.

The waiting period for these payouts varies depending on the type of claim.

Additional Holiday Pay is typically the fastest, taking roughly seven working days. Provident fund claims generally take between six and 12 weeks, while more complex claims—such as those for ill-health or death benefits—can range from three months to a full year.

To start the process, claimants need to submit a certified copy of their ID or passport, a bank confirmation letter or statement, their tax number, and fully completed claim forms.

The responsibility doesn't just lie with the worker. Masemola is calling on employers to be more transparent, urging them to educate staff on their payslips and maintain accurate records.

To bridge the gap, MIBCO is rolling out digital and physical "welcome packs" for new employees to ensure they know exactly what they are entitled to from day one.

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