BUSINESS NEWS - The South African employment benefit industry is currently worth around R800 billion, comprising retirement funds, medical aid schemes and group insurance contributions.

But a pushback against forced membership of retirement funds and medical aid schemes is expected to increase, according to NMG Benefits, one of the country’s largest independent benefit brokers.

This is due to rising medical inflation, changing employee expectations and affordability pressures, NMG experts said during a media roundtable last Monday.

Employees empowered … but hamstrung

The future of employee benefits is increasingly in the hands of employees because cost-to-company salary structuring is now the default, says Geoff Baars, chair and CEO of NMG.

“Very few employers are subsidising medical scheme contributions after retirement. It is a cost that the employee has to bear.”

Read more on Caxton publication, The Citizen

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