What are the new 2025/2026 wage rates for Fuel Retailers (Sector 5)?
Effective 1 October 2025, the new MIBCO minimum wage for Forecourt Attendants in Sector 5 is R45.79 per hour, reflecting a 6% increase. Cashiers are set at R45.30 per hour, and Chars at R34.64. Employers must also prepare for the mandatory medical insurance allowance of R0.44 per hour starting from January 2026.
How does the new MIBCO medical insurance allowance work?
The new medical insurance allowance is a mandatory contribution of R0.44 per hour (approximately R19.62 per week) that must be itemized on the employee's payslip. Starting 1 January 2026, this allowance is designed to provide fuel station employees with baseline healthcare coverage, and failure to remit this specific amount will lead to automated non-compliance notices.
2025/2026 Rates Summary
- Forecourt Attendant: R45.79/hr (R2,060.55/week)
- Cashier: R45.30/hr (R2,038.50/week)
- Char / Cleaner: R34.64/hr (R1,558.80/week)
What are the forecasted wage increases for 2026 through 2028?
The three-year agreement provides stability by setting out fixed increases: Year 2 (2026/2027) will see a 5% increase for Forecourt Attendants and 4% for other categories, followed by a flat 4% increase for all roles in Year 3. This phased approach allows fuel retailers to perform long-term payroll administration and budgeting.
What immediate actions should fuel retailers take?
Fuel retailers must update their payroll systems before the October 2025 deadline and ensure the new wage tables are visibly displayed for all staff members. If you are unsure about the implementation of the new medical allowance, consulting with MIBCO compliance specialists is the best way to avoid late-payment interest and council penalties.
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