The MIBCO Council Levy is a fundamental part of the industry's social security framework. It funds the administrative costs of the council, collective bargaining, and dispute resolution services. For 2025/2026, the levy rates have seen a technical adjustment that every payroll administrator must implement.
The New 2025/2026 Levy Rate
While the historical rate was R3.14, the updated MIBCO Administrative Collective Agreement has adjusted the council levy to:
- Current Rate: R3.84 per week.
- Total Contribution: R7.68 per week (R3.84 from the employee + R3.84 from the employer).
The 50/50 Split Rule
The MIBCO levy is a shared responsibility. The employer is legally required to:
- Deduct R3.84 from the employee's weekly wage.
- Contribute an equal R3.84 as the employer portion.
- Remit the total amount to MIBCO via the Online Returns system.
The 23-Hour Deduction Rule
One of the most common mistakes in MIBCO payroll is deducting levies for employees who didn't work a full week.
The Rule: You may only deduct the employee's portion of the levy (and other fund contributions) if they have worked at least 23 hours in that specific week.
If an employee works less than 23 hours—due to short-time, illness, or unpaid leave—no levy deduction should be made for that week. However, failing to pay the levy when the 23-hour threshold is met is a non-compliance notice trigger.
Important Deadlines
All levies, along with Provident and Sick Pay fund contributions, must be remitted to MIBCO by the 10th of every month.
Failing to meet this deadline results in:
- Interest Charges: Automated interest is applied to your account.
- Letter of Good Standing Denied: You cannot obtain a Letter of Good Standing if your levy account is in arrears.
- Audit Flagging: Consistent late payments are a primary signal for a full on-site compliance audit.
How to Update Your Payroll
Most modern payroll systems require manual adjustment of these "Council Fee" lines. Ensure your Liable Person verifies that the deduction and contribution lines match the current R3.84 rate. If your system is still deducting the old R3.14 rate, you are technically non-compliant and building up a debt with the council.
Is your payroll system still stuck on old MIBCO rates? Download our 2025 Earning & Deduction Code Guide to ensure your weekly returns are 100% accurate and penalty-free.