On July 15, 2024, the Motor Industry Bargaining Council (MIBCO) issued Circular Letter No. 2024/00008 to all participants in the motor industry.
This circular provides detailed information on the new minimum wage rates, guaranteed wage increases, and related information effective from September 1, 2024, to August 31, 2025. The adjustments are based on MIBCO Gazette 48340 of March 31, 2023, Notice No. R.3226.
General Information
The primary source of the wage rate changes is the Main Agreement, accessible on the MIBCO website. Employers are reminded that MIBCO will not adjust wages on the MIBCO Returns System without an official written mandate from the employer. Employers using the 'MIBCO Online Returns Application' can make wage adjustments on their own.
Fundamental Information
Wage Earnings Threshold:
As per Government Gazette 50254 of March 4, 2024, Notice 4468, the wage earnings threshold is set at R254,371.67 per annum.
Employees earning at or below this threshold must belong to either the Autoworkers Provident Fund (AWPF) or the Motor Industry Provident Fund (MIPF), unless exempted to join an alternative retirement fund.
MIBCO levies are applicable to employees earning below the threshold, regardless of their membership in MISA or NUMSA.
National Minimum Wage for Parking Garage Attendants:
The previously published MIBCO wage for Grade-1 Parking Garage Attendants was repealed on March 1, 2024. As of this date, the minimum hourly rate is R27.58, as prescribed by the National Minimum Wage.
Grade-1 Employees (Chars):
Wage Exemption Applications
Individual employers wishing to apply for an exemption from paying the stipulated wage increases must submit a Wage Exemption Application Form to their local MIBCO Regional Office by August 5, 2024. Forms are available at MIBCO Regional Offices or on the MIBCO website.
Allowance Rates
Allowance rates for the period from September 1, 2024, to August 31, 2025, are as follows:
Standby Allowance: R89.62
Call-out Allowance: R96.02
Tool Allowance: R33.39
Travel Allowance (per night not at home): R72.35
Travel Allowance (S&T per night): R135.00
Watchman Search Allowance: R5.57
Setting Bonus: R5.57
Various tool allowances and bonuses for specific roles
The holiday bonus for qualifying employees will be two weeks' wages, with a maximum payment of R6,346.68 per annum. For Chapter III establishments, the holiday bonus is three weeks' actual wages with no cap.
Prescribed Minimum and Guaranteed Wage Schedule
Wage tables included in the circular provide detailed minimum wages and guaranteed increases for various employee classes across different sectors. For example:
Forecourt Attendant: Minimum wage ranges from R27.58 per hour for first-year employees to R66.19 for fourth-year employees.
Clerical Employees: Minimum wages start at R7,197.67 per month for first-year clerical employees, increasing to R10,954.75 per month for those with three years or more experience.
Motor Vehicle Sales Person: Minimum wages range from R8,509.02 per month for first-year salespeople to R10,970.70 per month for experienced salespeople.
Contact Information for MIBCO Regional Offices
Employers and employees seeking further assistance or clarification can contact their respective MIBCO Regional Office:
Eastern Cape Region: Mr. L. Palmer, Mibco.EC@mibco.org.za, Tel: (041) 393-3600
Kwa-Zulu Natal Region: Mr. S. Nyuswa, Mibco.KZN@mibco.org.za, Tel: (031) 274-0644
Free State / Northern Cape Region: Mr. Q. Ndukuya, Mibco.FSNC@mibco.org.za, Tel: (051) 409-4000
Highveld Region: Mr. S. Nyuswa, highveldregion@mibco.org.za, Tel: (011) 369-7750
Northern Region: Mr. N. Sotsaka, Mibco.NR@mibco.org.za, Tel: (012) 362-4801
Western Province Region: Mr. B. Jacobs, Mibco.WP@mibco.org.za, Tel: (021) 941-7300
Alternative Contact: For further assistance or queries, you may also reach out to Three One Solutions for support and guidance regarding MIBCO-related matters.
Three One Solutions
Address: 1st floor, 292 Surrey Avenue, Ferndale, Randburg, 2194, Johannesburg
TEL: 010 085 9928010 085 9928
Email: support@threeonesolutions.com
Conclusion
This circular underscores MIBCO's commitment to maintaining fair wage standards and providing clear guidelines for employers and employees within the motor industry. The adjustments reflect the evolving economic landscape and aim to ensure that workers receive equitable compensation. Employers are encouraged to review the circular in detail and take the necessary steps to comply with the new wage rates and guidelines.
