MIBCO Minimum Wage 2024/2025 Update: New 3-Year Deal (2025–2028)

The Motor Industry Bargaining Council (MIBCO) is important for setting minimum wages and benefits in South Africa's motor industry. Every year, or during multi-year agreements, wages are changed through collective bargaining. This involves trade unions, employer associations, and MIBCO.

On August 23, 2025, a new three-year wage agreement was signed. This agreement is for the years 2025 to 2028. It was signed by NUMSA, MISA, the Retail Motor Industry Organisation (RMI), and the Fuel Retailers Association.

This landmark deal introduces above-inflation wage increases and, for the first time, healthcare benefits for fuel station attendants.

Employers must continue using the 2024/2025 MIBCO wage tables. Until the the Minister of Employment and Labour officially gazettes the new agreement.

This article explains:

• The current 2024/2025 MIBCO wage tables

• Details of the new 2025–2028 agreement

• What employers and payroll teams need to do right now to stay compliant

📊 Current MIBCO Wage Tables 2024/2025

The latest official wage changes started on September 1, 2024. They will stay in place until the new 2025–2028 agreement is published.

Below is a simplified breakdown of the minimum wages per sector (effective until the Gazette update):

🔹 Sector-5 (Fuel Retail – Forecourt, Chars & Cashiers)

• Forecourt Attendant (Grade 1): R1,962.45 per week / R43.61 per hour

• Char (Grade 1): R1,489.05 per week / R33.09 per hour

• Cashier (Grade 2): R1,941.75 per week / R43.15 per hour

🔹 Divisions C & D (Technical & Operational Grades)

• Grade 1: R1,283.85 per week / R28.53 per hour

• Grade 2: R1,723.95 per week / R38.31 per hour

• Grade 3: R1,866.60 per week / R41.48 per hour

• Grade 4: R2,038.50 per week / R45.30 per hour

• Grade 5: R2,272.95 per week / R50.51 per hour

• Grade 6: R2,730.15 per week / R60.67 per hour

• Grade 7: R3,400.65 per week / R75.57 per hour

• Grade 8: R3,887.55 per week / R86.39 per hour

🔹 Division B & D (Office, Admin & Sales Staff)

• Office/Clerical (1st year): R1,627.46 per week / R7,052.33 per month

• Office/Clerical (2nd year): R1,856.97 per week / R8,046.87 per month

• Office/Clerical (3rd year): R2,138.62 per week / R9,267.35 per month

• Office/Clerical (Thereafter): R2,482.90 per week / R10,759.23 per month

• Motor Vehicle Salesperson (1st year): R1,963.62 per week / R8,509.02 per month

• Motor Vehicle Salesperson (Thereafter): R2,531.70 per week / R10,970.70 per month

• Parts Salesperson (1st year): R2,046.71 per week / R8,869.08 per month

• Parts Salesperson (Thereafter): R2,514.19 per week / R10,894.82 per month

• Bookkeeper: R3,192.27 per week / R13,833.17 per month

• Accountant: R5,430.57 per week / R23,532.47 per month

🔹 Apprentices & Learners

3-Year Trade:

• Year 1: R1,954.35 per week / R43.43 per hour

• Year 2: R2,423.25 per week / R53.85 per hour

• Year 3: R2,978.55 per week / R66.19 per hour

4-Year Trade:

• Year 1: R1,954.35 per week / R43.43 per hour

• Year 2: R2,143.35 per week / R47.63 per hour

• Year 3: R2,423.25 per week / R53.85 per hour

• Year 4: R2,978.55 per week / R66.19 per hour

NQF Learnerships:

• Level 1: R1,954.35 per week / R43.43 per hour

• Level 2: R2,143.35 per week / R47.63 per hour

• Level 3: R2,423.25 per week / R53.85 per hour

• Level 4: R2,978.55 per week / R66.19 per hour

⚠️ Note: These are the minimum legally binding wages. Employers cannot pay below these rates, even if an employee agrees.

🕑 When Does the New Agreement Take Effect?

The process is as follows:

1. Agreement Signed (23 Aug 2025) → Done

2. Special MIBCO Council Meeting (Sept 2025) → Formal adoption

3. Gazette Publication → Minister of Employment and Labour sets effective date

4. Legal Implementation → All employers must comply with back-pay if delayed

👉 Until step 3 happens, the 2024/2025 wage tables remain binding.

✅ What Employers Need to Do Now

1. Keep paying 2024/2025 wages until Gazette confirmation

2. Budget ahead: Plan for 4–6% annual increases + medical allowances

3. Update payroll systems early to avoid compliance gaps

4. Train payroll/HR teams on new structures

5. Audit your compliance: Employers who delay risk retrospective back-pay claims and penalties

🌍 Why This Agreement is Historic

• First-ever healthcare access for forecourt workers

• Above-inflation increases in a tough economic climate

• Three years of stability for both employers & employees

• Negotiations concluded without strikes or disputes (rare in SA labour history)

This sets a new standard for constructive labour relations in South Africa’s motor industry.

❓ FAQs

• Q: When will the 2025–2028 increases apply?

• A: Once the Minister publishes them in the Government Gazette. Until then, 2024/2025 wages apply.

• Q: Will employers have to back-pay?

• A: Yes. If the Gazette publication is delayed, employers must pay increases retroactively from the effective date.

• Q: Who does the New Deal cover?

• A: Over 300,000 workers in fuel retail, dealerships, component manufacturing, body building, tyre fitment, and after-market services.

• Q: What’s new for petrol attendants?

• A: First-time access to healthcare, maternity, accident, and death benefits.

⚖️ Stay Compliant with Three One Solutions

At Three One Solutions, we help employers in the motor industry avoid costly compliance mistakes.

• MIBCO Compliance Audit → R2500 once-off

• Workshops → Train your payroll and HR teams

• Full-Service Compliance Packages → Bronze, Silver, Gold

📥 Download the 2025 MIBCO Wage Agreement PDF Summary (coming soon)

📞 Book your Compliance Audit today

👤 About the Author

Elleck Mgiba is the founder of Three One Solutions. He has over 20 years of experience in the motor industry. He has also trained professionals on MIBCO compliance for more than 15 years. Elleck has helped businesses with inspections, audits, and disputes. He is known as one of South Africa’s top MIBCO compliance experts.

🔑 Final Takeaway

• 2024/2025 wage tables remain binding until Gazette publication

• New 2025–2028 deal brings 4–6% annual increases + healthcare benefits

• Employers must prepare now to avoid penalties and back-pay claims

👉 Don’t wait for the Gazette to catch you off guard. Let’s get your payroll and compliance systems ready before inspectors arrive.