MIBCO Minimum Wage 2024/2025 Update: New 3-Year Deal (2025–2028)
Status: RECONSTRUCTED from agreement details Original Publication: September 11, 2025 Effective Date: 22 December 2025 (Gazetted)
Historic 3-Year Wage Agreement Signed
We are pleased to announce that MIBCO has successfully concluded a new three-year wage agreement for the period 2025 to 2028. The agreement was signed on 23 August 2025 by trade unions (NUMSA, MISA) and employer organizations (RMI), bringing stability and certainty to the industry for the next 36 months.
Agreement Duration
- Year 1: 2025/2026 (Effective from date of publication)
- Year 2: 1 September 2026 – 31 August 2027
- Year 3: 1 September 2027 – 31 August 2028
Wage Increases by Sector
1. Component Manufacturing Sector
- Year 1 (2025): 6% increase on actual wages
- Year 2 (2026): 5% increase
- Year 3 (2027): 5% increase
2. General Industry (Retail, Service, Body Repair)
- Year 1 (2025): 5% increase on minimum wages
- Year 2 (2026): 5% increase
- Year 3 (2027): 5% increase
3. Apprentices & Learners
- All Years: 3% increase on minimum wages per year
4. Fuel Retailers (Sector 5)
- See our separate detailed post on the specific Sector 5 increases and the new medical insurance allowance.
Why This Matters for Your Business
The conclusion of this agreement without industrial action (strikes) is a major win for the sector. It allows businesses to plan their budgets with certainty for the next three years.
Next Steps for Employers
- Wait for Gazetting: While the agreement is signed, it only becomes law for non-parties once gazetted by the Minister of Employment and Labour (expected December 2025).
- Budgeting: Start factoring these increase percentages into your financial forecasts for 2026 and 2027.
- Compliance: Ensure your payroll systems are ready to implement the Year 1 increases as soon as the effective date is confirmed.
Note: This article was reconstructed based on the official MIBCO 2025-2028 Main Collective Agreement signed 23 August 2025.
