R88bn in unclaimed benefits spurs motor industry action

With billions of rand in financial assets currently sitting unclaimed across South Africa, the Motor Industry Bargaining Council (Mibco) has launched a major push to reconnect the more than 312 000 employees it represents with their hard-earned benefits.

The initiative seeks to address a systemic issue where, in 2025, South Africans were yet to claim roughly R88 billion in financial assets, including pensions, severance packages, and death benefits.

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The primary obstacle is often as simple as a lack of awareness.

“Many workers in our sector are not aware that they have money owed to them,” says Mibco general secretary Paulos Masemola.

He points to a variety of funds that often go ignored, including provident fund benefits, additional holiday pay, and arrear wage payments.

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

The scale of the problem is significant.

Unclaimed benefits in retirement funds alone amount to tens of billions of rand, impacting millions of members or their estates.

Within the motor industry, these funds often belong to former employees or the families of deceased members who were never notified that money was due.

Restoring dignity through payouts

For Mibco, these are more than just administrative entries on a ledger – they are life-changing financial lifelines.

Masemola says the council has seen first-hand how accessing these funds can provide relief during a crisis.

In one instance, a member diagnosed with leukaemia was able to use a pending payout to negotiate with creditors and stabilise her finances while undergoing treatment.

Another member received his provident fund benefit within two months, allowing him to cover urgent funeral expenses for his father.

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“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.”

Clarity from day one, and catch-up process

To combat the ‘theoretical’ nature of these benefits, Mibco is introducing digital and physical ‘welcome packs’ for new employees to outline exactly what they are entitled to from day one.

Masemola notes however that employers also carry a heavy burden of responsibility in this process.

“Employers must educate employees on their pay slips, maintain accurate records, pay and submit monthly contribution schedules … so that Mibco can allocate contributions correctly.”

Transparency in this regard protects both the worker and the employer, he adds.

Mibco reminds workers that there is no ‘expiry date’ on their funds.

Unclaimed benefits can be recovered in perpetuity, though members are encouraged to apply during their notice periods to avoid administrative delays.

Masemola’s message to the 23 513 employers and their staff is clear: “Your work has earned these benefits. They are not a favour; they are your right.”

Read: Nearly R90bn in unclaimed assets, says FSCA