Additional Holiday Pay (AHP) is a specialized benefit prescribed by the MIBCO Main Collective Agreement for specific technical categories in the motor industry. Unlike a discretionary bonus, AHP is a mandatory, accumulated fund that provides financial security for artisans and apprentices.
What is AHP and Who Qualifies?
AHP is not a 13th cheque. It is a specific fund where employers contribute a fixed weekly amount on behalf of eligible employees. It primarily applies to:
- Artisans (Journeymen, BA Journeymen)
- Suspension Fitters
- Operative Engine Assemblers
- Apprentices (All years of service)
Crucial Rule: If an employee is entitled to AHP, they are generally not entitled to a separate holiday bonus unless their specific employment contract guarantees both.
AHP Contribution Rates (2024–2025)
For the period ending August 31, 2025, the following weekly contribution rates apply. These must be remitted by the employer to MIBCO:
| Employee Category | Weekly AHP Rate (2024-2025) | | :--- | :--- | | Grade 7 (Artisans/Journeymen) | R111.10 | | Grade 8 (Advanced Technical) | R126.99 | | Apprentice (1st Year) | R63.90 | | Apprentice (2nd Year) | R70.07 | | Apprentice (3rd Year) | R79.17 | | Apprentice (Final Year) | R97.32 |
Note: These rates may vary slightly for Chapter III establishments. Ensure your online returns match the current gazetted schedules.
How to Claim Your AHP Funds
Employees do not receive these funds in their monthly salary. The money is held by MIBCO and must be claimed.
Step-by-Step Claim Process:
- The Form: Complete the official AHP Application Form before you go on annual leave.
- Employer Verification: The form must be signed and stamped by your employer to verify your service.
- Submission: Submit the form via the MIBCO Self-Service Portal or email it to
AHP@mibco.org.za. - Required Documents: Attach a copy of your South African ID and proof of your bank account.
- Pro-rata Claims: If you leave the industry before a full year is complete, you are entitled to a pro-rata payout of the accumulated funds.
Why Accurate Reporting Matters
For employers, mismanaging AHP is a high-risk compliance error. MIBCO auditors specifically look for "Grade 7" artisans who are being incorrectly reported as "Grade 6" to avoid the AHP contribution.
Failing to properly register an artisan for AHP can result in:
- Massive Back-pay Claims: Employees can claim for years of missing contributions.
- Interest Penalties: Interest is charged from the date each contribution was due.
- Dispute Resolution: Unresolved AHP claims are a common cause of DRC referrals.
Pro-Tip for Employers
If you provide a guaranteed 13th cheque that is equal to or greater than the value of the annual AHP, you may be eligible to apply for an AHP Exemption. However, this must be formally approved by the council — you cannot simply stop paying without an exemption certificate.
Still confused about AHP vs. Holiday Bonuses? Book a Technical Payroll Review with Three One Solutions to ensure your artisan grading and fund contributions are 100% compliant.