TL;DR
Motor industry employees in the AWPF or MIPF access their Two-Pot Savings Pot exclusively through the MIFA Mobile App — there is no other claim channel.
Contributions from 1 March 2024 split into a Savings Pot (one-third, withdrawable once a year) and a Retirement Pot (two-thirds, locked until retirement). Everything saved before 28 February 2024 sits in a separate Vested Pot, of which up to R25,000 or 10% can move into the Savings Pot for immediate access. Withdrawals need identity verification first — and that verification fails for anyone still holding a green ID book. Employers carry a direct obligation to share this information with staff, per MIBCO Circular 2024/00016.
Why Does the Two-Pot System Split Retirement Savings Into Three Pots?
The Two-Pot Retirement System restructures how contributions are held so members can access some savings during their working years, not just at retirement — without dismantling the whole system's long-term purpose.
The mechanism works by splitting every future contribution three ways in effect: one-third goes to a Savings Pot built for emergency access, two- thirds goes to a Retirement Pot that stays locked until age 65, and whatever had already accumulated before the system started stays untouched in a Vested Pot under the old rules. This isn't a motor-industry-specific reform — it's a national retirement-fund change — but for the motor industry specifically, it applies through two funds: the Autoworkers Provident Fund (AWPF) and the Motor Industry Provident Fund (MIPF), both administered by MIFA — Motor Industry Fund Administrators.
| Pot | Allocation | Access |
|---|---|---|
| Savings Pot | 1/3 of contributions | Withdrawable once per tax year, minimum R2,000 |
| Retirement Pot | 2/3 of contributions | Locked until retirement, must buy an annuity |
| Vested Pot | All pre-1 March 2024 savings | Governed by previous rules; up to R25,000 or 10% can transfer to the Savings Pot |
The South African Revenue Service taxes every Savings Pot withdrawal at the employee's marginal income tax rate — this isn't a tax-free benefit, and employees need to understand that before they withdraw, not after the payout arrives short.
How Do AWPF and MIPF Members Access Their Savings Pot?
AWPF and MIPF members access their Two-Pot savings exclusively through the MIFA Mobile App, per MIBCO Circular 2024/00016, issued 6 September 2024. There is no other claim channel — not a branch form, not a phone call, not email.
Before any withdrawal processes, two steps come first: registering on the app, and verifying identity through it. Skip either step and the claim doesn't go through. Members complete both either on their own device — downloading the MIFA app on iOS or Android — or at a MIBCO office, using the secure devices MIBCO makes available for members who need assistance.
As an employer, sharing this process with staff isn't optional — MIBCO Circular 2024/00016 places a direct communication obligation on employers. This is exactly the kind of compliance communication Three One Solutions helps employers structure and deliver.
What Does the MIFA Identity Verification Process Require?
The MIFA app verifies identity through facial recognition and a check against Department of Home Affairs records — and the Home Affairs check fails outright for anyone still holding a green South African ID book.
Members with a green ID book can't complete verification until they obtain either a barcoded smart card ID or a temporary barcoded ID document. This is one of the most common points of confusion employers run into when briefing staff on the Two-Pot process — flag it now, for every affected employee, rather than letting them discover it stuck at the verification step.
How Do Employees Register and Withdraw on the MIFA App?
Walk your staff through these steps directly, or share this section with them.
Step 1 — Download the app. Search "MIFA" on iOS or Android.
Step 2 — Register. Complete the form with personal details, including ID number and contact information.
Step 3 — Verify identity. The app uses facial recognition plus Home Affairs data. A barcoded smart card ID or temporary ID document is required — a green ID book won't work.
Step 4 — Request a withdrawal. Navigate to Withdrawals, select the Savings Pot, enter an amount of at least R2,000, and confirm.
Step 5 — Track the request. The app shows withdrawal status. Once approved, funds transfer to the member's bank account, minus transaction fees.
Members who can't complete this independently can visit a MIBCO Regional Office and use the secure app-enabled devices on-site.
What Are the Withdrawal Rules and Tax Treatment?
Savings Pot withdrawals have been available since 1 September 2024, limited to one per tax year, with a R2,000 minimum balance required before any withdrawal is permitted.
Unused balances don't expire at year-end — they roll over and add to the following year's available savings on 1 March. What does apply every time is tax: SARS treats each withdrawal as income for that tax year, and the fund deducts tax at the member's marginal rate before paying out. A member who withdraws R10,000 at a 25% marginal rate receives R7,500, minus transaction fees — not the full R10,000. Withdrawing late in a tax year, when annual income already sits higher, can push more of the withdrawal into a higher tax bracket than withdrawing earlier would have.
The Vested Pot — everything accumulated before 1 March 2024 — stays outside this system entirely, governed by the fund's previous rules. Members can move up to R25,000 or 10% of that balance (whichever is lower) into the Savings Pot, a one-way transfer; once moved, it's treated as ordinary Savings Pot funds. The remainder stays locked under the old rules until retirement or resignation.
What Must Motor Industry Employers Do Right Now?
MIBCO Circular 2024/00016 places five concrete obligations on employers, not just a general "communicate this" instruction:
- Share the MIFA registration process with all staff — the app is the only access channel, and registration plus verification both come before any claim.
- Flag the green ID book issue now. Identify affected staff and advise them to get a barcoded smart card ID or temporary ID from Home Affairs before they hit the verification wall.
- Clarify the tax impact. Withdrawals are taxable income at the member's marginal rate, not a tax-free payout.
- Point employees to MIBCO offices if they can't complete the process on their own device.
- Keep a record that you communicated this to staff, in case a compliance query arises later.
Your Liable Person carries responsibility for this communication. If that role is unclear on the Two-Pot obligations, a free MIBCO compliance check closes the gap fast.
Frequently Asked Questions
How do motor industry employees access Two-Pot retirement savings? AWPF and MIPF members access their Two-Pot savings exclusively through the MIFA Mobile App. They must register and complete identity verification before making a claim — MIBCO Circular 2024/00016 confirms this is the only access channel.
What happens if an employee has a green South African ID book? The Department of Home Affairs verification on the MIFA app doesn't support green ID books. Affected employees need a barcoded smart card ID or a temporary ID document before they can register and claim.
When can employees start withdrawing from the Savings Pot, and how much? Withdrawals have been available since 1 September 2024, with a R2,000 minimum balance required and one withdrawal permitted per tax year (1 March to end of February).
Is the Two-Pot withdrawal taxed? Yes. SARS taxes Savings Pot withdrawals at the member's marginal income tax rate, deducted by the fund before payout. Withdrawing later in the tax year, once annual income is already higher, can mean more of the amount falls into a higher bracket than an earlier withdrawal would have.
What is the employer's obligation under MIBCO Circular 2024/00016? Employers must share the full Two-Pot claim process with staff — the MIFA app registration steps, the identity verification requirements, the green ID book limitation, and the withdrawal rules — and keep a record that the communication happened.
Does unused Savings Pot money expire at the end of the tax year? No. Any balance left in the Savings Pot at year-end carries over and adds to the following year's available amount on 1 March.
Need help navigating MIBCO compliance? Book a FREE 30-minute Strategy Session with Three One Solutions.
Written by the Founder & MIBCO Compliance Specialist at ThreeOneSolutions.com — HR compliance for South Africa's motor industry.