Why can’t sole proprietors/advocates join the provident fund?

In a nutshell, to join a pension or provident fund in South Africa you need to be an "employee" in an employee/employer relationship.

Up until recently the Commissioner of Inland Revenue only regarded employees and directors as being "employees". However, after a change to the Taxation Laws Amendment Act late in 2008, partners are also now regarded to be "employees".

Therefore, as sole practitioners and advocates are not "employees" in terms of law they cannot join any pension or provident fund. They can take out a policy for individuals such as a retirement annuity.