| 1. |
The Public Service Co-ordinating Bargaining Council (PSCBC) has, on a national level, developed specific housing measures for employees within the framework of Resolution 2/2004, read in conjunction with Resolution 3/1999 of the PSCBC. |
| 2. |
The existing homeowner's allowance scheme has been extended to allow employees who have rental agreements to share in the state's housing benefits from 1 January 2005. |
| 3. |
The following information is of importance for ensuring the smooth implementation of the measures: |
| 3.1 |
|
An applicant must own or rent a home in South Africa which is occupied by the employee and/or her/his spouse and/or her/his dependent children. |
| 3.2 |
|
A housing allowance is payable :- |
| 3.2.2 |
|
for one spouse only if both spouses are in the employ of the public service, except in a case where, for operational reasons, they are stationed in different magisterial districts and have to maintain two separate homes; and |
| 3.2.3 |
|
where a number of independent employees who have separate rental agreements, live in one home. Each employee will qualify for an allowance if he/she applies for it. |
| 4. |
The current homeowner's allowances are still calculated according to PSCBC Resolution 3/1999 and will remain unchanged in respect of employees who are already making use of the system. |
| 5. |
In terms of Resolution 2/2004 a non-pensionable housing allowance for all permanent employees will be phased in for all permanent employees as follows from 1 January 2005: |
| 5.1 |
|
From 1 January 2005, R100.00 per month of the homeowner's allowance |
| 5.2 |
|
From 1 January 2006, 40% of the amount of the homeowner's allowance |
| 5.3 |
|
From 1 January 2007, 60% of the amount of the homeowner's allowance |
| 5.4 |
|
From 1 January 2008, 80% of the amount of the homeowner's allowance |
| 5.5 |
|
From 1 January 2009, 100% of the amount of the homeowner's allowance to a maximum amount of R403.00 a month |
| 6. |
An employee who purchases a home on or after the date on which Resolution 2/2004 becomes effective, will be considered for the maximum amount of R 403.00 per month provided that the employee fulfill all the requirements as set out in paragraph 3 above. |
| 7. |
Employees who currently receive a homeowner's allowance of less than the maximum amount will, as part of the phasing-in phase, receive an increase in their homeowner's allowance until they receive the maximum benefit as indicated in paragraph 5. |
| 8. |
The rental payable by employees who occupy state housing, as required by the WCED, shall with effect from 1 January 2005, be equal to the greater of either the housing allowance, as part of the phasing-in period (as in paragraph 5) or the applicable amount payable in terms of Part XVI of Annexure B to PSCBC Resolution 3/1999, i.e. the rental amount will be equal to the housing allowance. |
| 9. |
Attached is the WCED’s housing allowance application form (Resolution 2/2004) which will be used for administrative purposes only in respect of persons who have lease agreements.The employees concerned must complete the form and return it to the WCED Head Office. |
| 10. |
Please bring this circular to the attention of all employees and request them to sign and date the document as proof that they are familiar with its contents. |
SIGNED: J.H. HURTER
HEAD: EDUCATION
DATE: 2004:11:17
|