On 08 February 2021, The Government Gazette (Vol. 44137) was published stipulating the increase of the earnings threshold, which now amounts to R211 596.30 per annum, an increase of R6 163.00. On 18 March 2021, another Government Gazette (Vol. 44289) was published, stipulating that Non-Parties should now also adhere to the regulations as stated in the MIBCO Main Collective Agreement.
In this Gazette (Vol. 44289), it stipulates that the MIBCO Main Collective Agreement was extended to all Non-Parties which means that everybody in the Motor Industry now needs to adhere to the MIBCO Main Collective Agreement, not just the Retail Motor Industry Organisation (RMI), Fuel Retailer’s Association of South Africa and the National Union of Metalworkers of South Africa as was previously stipulated.
This means that all employees and employers working within the Motor Industry needs to pay the MIBCO levy fee of R3.14 per week unless they have applied for exemption at the Bargaining Council.
With the Motor Industry Bargaining Council (MIBCO) earnings threshold of R211 596.30 per annum, it means that any employee earning below the R211 596.30 per annum in the Motor Industry is obliged to belong to either the Autoworkers Provident Fund or the Motor Industry Provident Fund unless the employee can prove that they have an alternative provident fund and thus be exempted from these regulations as stated in the Government Gazette.
These employees will automatically be registered to either one of these two provident funds and a contribution of 7.5% from the employees will be required and 8% contribution from the employers. Furthermore, all employees earning below the threshold are automatically entitled to wage increases as per the Main Collective Agreement.
Employers that cannot afford to pay the increases can also apply for Exemption by submitting the following documentation to the Bargaining Council:
- Wage exemption application Form – MIBCO web page (mibco.org.za);
- Set of Financial Statements for the past three years together with the detailed Income Statements;
- Projected Income Statement;
- Financial Ratio Analysis;
- Proof of Consultation with employees;
- Annexure A – List of all employees together with their signatures;
- Annexure B, C, D.
A very important fact that many employers tend to forget is that the employer is still bound by the obligations in regards to wages up until the date the Council approves the exemption application. Only after approval may the employer implement the new, approved wage.
For further instructions on how to apply for exemption or to get all of the relevant document, please contact your nearest SEESA Office.
About the Author:
Zan-Mari Kok is currently a Labour and Consumer Protection POPI Legal Advisor at SEESA’s Polokwane branch. She completed her Honours degree in BCom Labour Relations Management in 2017 at the North-West University.
Sources:
MIBCO Circular Letter: 2021/00003
MIBCO Circular Letter: 2021/00004
MIBCO Circular Letter: 2021/00005
The Government Gazette (Vol. 44137) dated 8 February 2021
Government Gazette (Vol. 44289) dated 18 March 2021