MIBCO Minimum Wage 2025/2026: Sector 5 Fuel Retailers Update

The Motor Industry Bargaining Council (MIBCO) has released Circular No. 2025/00023. This circular confirms new wage rates for Sector 5 fuel retailers.

These increases are related to a change in the retail margin on petrol. The Department of Mineral and Petroleum Resources made this change to cover wage increases.

If you run a fuel station or retail store in the motor industry, you must update your payroll. You also need to follow the new rates.

📅 When Do the New Sector 5 Wages Start?

The new minimum wages are effective Wednesday, 1 October 2025 and apply to:

• Forecourt Attendants

• Cashiers

• Chars

Employers must implement these rates immediately.

📊 Updated Sector 5 Wages (Effective 1 October 2025)

Forecourt Attendant

• Basic Hourly Rate: R45.79

• Medical Allowance per Hour: R0.44

• Total per Hour: R46.23

• Weekly Wage: R2060.55

• Medical Allowance per Week: R19.62

• Total per Week: R2080.17

Cashier

• Basic Hourly Rate: R45.30

• Medical Allowance per Hour: R0.44

• Total per Hour: R45.74

• Weekly Wage: R2038.50

• Medical Allowance per Week: R19.62

• Total per Week: R2058.12

Char

• Basic Hourly Rate: R34.64

• Medical Allowance per Hour: R0.44

• Total per Hour: R35.08

• Weekly Wage: R1558.80

• Medical Allowance per Week: R19.62

• Total per Week: R1578.42

💡 Pro Tip: Always include the medical allowance when calculating payroll.

🔑 Key Notes from the Circular

• These rates match the Wage Settlement Agreement signed on 23 August 2025.

• Employers are legally expected to comply, though MIBCO enforcement is pending gazetting of the Main Collective Agreement.

• Ensure your payroll reflects both hourly and weekly rates plus medical allowances.

❓ FAQs About Sector 5 Wage Update

1. How do I calculate overtime at the new rates?

   Overtime is usually 1.5x the total hourly rate for weekdays and 2x for weekends/public holidays. Include the medical allowance in calculations if required by your company policy.

2. Are medical allowances taxable?

   Medical allowances are typically included in gross wages, but consult your accountant or SARS for exact tax treatment.

3. What happens if I don’t implement the wage increase?

   Non-compliance can lead to MIBCO penalties and legal disputes, especially once the Main Collective Agreement is gazetted.

4. Can I download the Sector 5 wage table?

5. Yes! Download the latest Sector 5 wage PDF here to simplify payroll updates.

✅ Steps to Stay Compliant

1. Update Payroll Software: Reflect new hourly & weekly wages plus medical allowances.

2. Notify Employees: Communicate the change to your staff.

3. Document Changes: Keep signed records for audits.

4. Schedule MIBCO Audit: Ensure full compliance before inspections.

⚡ Stay 100% MIBCO Compliant with Us

At Three One Solutions, we help employers in the motor industry stay compliant without stress or confusion.

✅ Services Include:

• Payroll updates for MIBCO wage changes

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✍️ Author Bio

Elleck Mgiba is the founder of Three One Solutions. He has over 20 years of experience in the South African motor industry. He has also trained professionals in MIBCO compliance for over 15 years. Elleck specializes in payroll, labour law, dispute resolution, and inspections.