What is the new MIBCO Council Levy for 2025?
As of 3 February 2025, the new MIBCO Council Levy is R3.14 per week, payable by both the employer and the employee. This results in a total weekly contribution of R6.28 per staff member. This levy is mandatory for every business falling under MIBCO's jurisdiction and is vital for funding the council's administrative and dispute resolution functions.
Who is required to pay the MIBCO Council Levy?
Every employer and employee operating within the registered scope of the Motor Industry Bargaining Council (MIBCO) in South Africa is legally required to pay the weekly levy. This includes workshops, dealerships, and fuel retailers. Failing to remit these small weekly amounts is a common trigger for a full compliance audit.
2025 Levy Breakdown
- Employee Share: R3.14 per week.
- Employer Share: R3.14 per week.
- Total: R6.28 per employee.
How should you handle missed levy increases in your payroll?
If you missed the February 2025 implementation, you must immediately calculate the arrears owed from the effective date and submit them with your next MIBCO Online Return. Proactively correcting these errors shows "good faith" to the council and can help you avoid the more severe administrative fines associated with long-term non-compliance.
Why does MIBCO increase the Council Levy?
The levy increases ensure that MIBCO has the resources to provide essential services like collective bargaining facilitation, social security fund management, and the Dispute Resolution Centre (DRC). As industry costs rise, these small adjustments allow the council to maintain the framework that keeps South Africa's motor industry stable and fair for all parties.
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