MIBCO returns: the monthly return for motor industry employers

Who must register with the Motor Industry Bargaining Council, what goes on the monthly return, the 10th deadline, what late payment costs, and how to build it from payroll.

What MIBCO is and who it covers

MIBCO is the Motor Industry Bargaining Council, registered under s.29 of the Labour Relations Act (LRA); the RMI and FRA are the employer parties, NUMSA and MISA the unions. Two collective agreements matter: the Administrative Agreement (levies, registration, returns, enforcement) and the Main Agreement (wages and conditions). Both were gazetted in Gazette 53822 in December 2025 and extended to non-parties under LRA s.32, so they bind you whether or not you belong to the RMI or FRA, until 31 August 2028 (Main) and 31 August 2030 (Administrative).

The "Motor Industry" definition in cl. 3 of the Administrative Agreement includes:

  • Repair, servicing, spraying, painting and reconditioning of chassis, bodies, engines and auto-electrics: workshops and panel beaters (item 1).
  • Filling and service stations, including the attached convenience store (item 7; "Sector 5").
  • Sale of new or used vehicles, parts and accessories: dealerships and parts shops (item 8; "Sector 6").
  • Engine reconditioning, component manufacturing and vehicle body building (items 2, 10 and 11; Main Agreement Chapters II to V).
  • Tyre repair and retreading, battery servicing, auto valet and vehicle parking (items 3 to 6).

OEM assembly plants and civil engineering equipment are excluded. If an activity is borderline, ask your Regional Council in writing. For how the councils fit together see our bargaining council returns guide.

Registration: employer first, then every employee

Administrative Agreement cl. 10 requires every employer to lodge an Annexure A statement with the Regional Council for each place of business within 30 days of starting to trade, and to notify any change of ownership, name, address or directors within one month. Employees are registered on Annexure B through the monthly return (cl. 10(3)), and MIBCO's FAQ says staff must be registered "regardless of whether they earn above the BCEA threshold". The threshold only decides which Main Agreement clauses apply and whether provident fund membership is compulsory. An arbitrator can fine a non-party employer that fails or refuses to register (cl. 10(4)); party employers are enforced through the Dispute Resolution Centre (cl. 24) and LRA s.33A.

Two separate online registrations

On the Self-Service Portal (sspportal.mibco.org.za) you register a Liable Person (an owner, director, partner or board member). Returns are processed on MIBCO Returns Online (mibcoreturns.co.za). The FAQ warns that Liable Person registration "is not the same as having Online Returns access"; apply for Online Returns separately (form on the Forecasts and Monthly Returns page).

What the monthly return covers

One MIBCO return carries every deduction and contribution the council collects (cl. 13).

ItemWho paysRate / basisSource
Council levyEmployee and employer, equallyR3.84 per week each (R7.68 total) since 26 April 2026; nil for a week under 23 paid hours; apprentices excludedAdmin Agreement cl. 13(1), (2), (5) as amended by Gazette 54438, Notice R.7333; Circular 23 of 2026
Provident fund (AWPF or MIPF)Employee and employerEmployee 7,5% of pensionable remuneration; employer 8%MIPF / AWPF Agreements cl. 6(1), (3)
Sick, Accident and Maternity Pay Fund (SAMF)EmployerCompulsory for MISA members at RMI shops, voluntary otherwise; paid on the returnMIBCO FAQ; Circular 36 of 2025 para 2.4
Additional Holiday Pay (AHP)EmployerGrade 7 R122.49, grade 8 R140.01 per week (R123.66 / R141.34 in Chapter III establishments) from 1 September 2026 to 31 August 2027Main Agreement Division A cl. 6.2(1)-(2); Circular 43 of 2026 para 4.2
Union subscriptions (MISA, NUMSA)Employee, deducted by employerPaid to the council's Shared Services Centre with a per-employee statementAdmin Agreement cl. 14

Three details trip employers up. Provident fund membership is compulsory at or below the National Wage Threshold (R269 600,90 a year, R22 466,74 a month or R5 184,63 a week, from 1 May 2026 per Gazette 54544, Notice R.7384; Circular 43 of 2026 para 2.1). Fixed-term and probationary employees are excluded from the fund for their first six months in the industry unless you waive the exclusion (MIPF / AWPF Agreements cl. 2(2)(d)); every other new hire joins from engagement. The Sector 5 medical insurance allowance (R90 a month from 1 September 2026, Main Agreement cl. 15(2)(b)) forms part of wages, but for forecourt attendants, chars and cashiers the Medical Health Insurance Scheme contributions are deducted and paid over through the MIBCO return (Circular 02 of 2026) unless the employee has opted out. And AHP is separate from leave under BCEA s.20; see our note on annual leave accrual.

How to submit: Returns Online or email

MIBCO accepts returns through MIBCO Returns Online or by email to [email protected]. Online is the sensible default: after each submitted return the system generates a forecast for the next period, you record engagements, discharges, breaks and any rate, fund or occupation changes, then click Submit Return and pay the Payment Analysis total. Only the oldest forecast can be processed, so a missed month blocks the next. Two cautions: the forecast does not update when minimum wages change, so load new rates yourself (Circular 43 of 2026 para 1.5), and pay with the reference given in MIBCO's remittance instructions; the Council allocates each payment it receives to the period it relates to (cl. 13(7)).

Deadline, interest and penalties

The return and levy are due by the 10th of the month following the month they relate to (cl. 13(4)); union subscriptions too (cl. 14(1)(b)). Treat the 10th as the deadline for everything on the return, whatever outer limit the fund agreements allow (MIPF / AWPF Agreements cl. 6(6)).

  • Interest: any amount unpaid on due date attracts interest at 1,5 per cent, payable monthly (cl. 23(1)); provident fund arrears follow the Pension Funds Act (cl. 23(2)). Collection costs are added if the debt goes to a collector.
  • Enforcement: LRA s.33 designated agents may inspect wage records (cl. 9); disputes go to the MIBCO Dispute Resolution Centre (cl. 24), with awards enforceable under LRA s.33A.
  • Records: keep name, ID, occupation, hours and pay for every employee for three years (cl. 12).

Put the 10th alongside your EMP201, UIF and COIDA dates; see our 2026 employer compliance calendar and COIDA return of earnings guide.

Wage schedules and exemptions

Minimum wages are set per chapter, grade and region in Division C of the Main Agreement. The current tables and allowances for 1 September 2026 to 31 August 2027 (standby R98.81, call-out R105.86, apprentice tool allowance R35.42 a week; Main Agreement cl. 3.13(2)(b)(ii) and 3.13(3)(a)(ii)) are in Circular 43 of 2026, with Circular 45 of 2026 for Sector 5, on the MIBCO Circulars page. A stale rate produces a wrong levy, AHP and fund contribution every month. Employers who cannot afford an increase may apply to their Regional Council for a wage, AHP or provident fund exemption within the windows set by the latest circular.

Preparing the return from payroll

  1. Map every employee to a MIBCO occupation code and grade, and the business to an employer activity code (both lists are on the Forecasts and Monthly Returns page). Flag apprentices, who are levy-exempt.
  2. Capture ID, passport or permit number, date of birth, sex and occupation (cl. 13(3)).
  3. Export weekly paid hours; weeks under 23 hours carry no levy or fund contribution (cl. 13(5)(a); MIPF cl. 6(1)).
  4. Set each employee's fund (AWPF for grades 1 to 6; MIPF for Division B staff, apprentices and grades 7 and 8) or exemption certificate, and track the six-month exclusion for fixed-term and probationary hires (MIPF / AWPF cl. 2(2)(d)) unless you have waived it.
  5. Confirm pensionable remuneration and the current rate per grade so the 7,5% and 8% contributions and AHP are right.
  6. List engagements and terminations with dates, checking notice was handled correctly; see BCEA s.37 notice periods.
  7. Reconcile the forecast against payroll, pay with the correct reference, and file the statement for three years.

If some staff fall under another council, the same payroll feeds a second return; see our NBCRFLI, MEIBC and NBCCI guides and the labour law compliance checklist.

Frequently asked questions

When are MIBCO returns due?

By the 10th of the month following the month the return relates to (Administrative Agreement cl. 13(4); MIBCO FAQ). Unpaid amounts attract interest at 1,5 per cent under cl. 23.

How much is the MIBCO council levy?

R3.84 per week from each employee other than apprentices, matched by R3.84 from the employer, so R7.68 per employee per week since 26 April 2026 (cl. 13(5) as amended by Gazette 54438, Notice R.7333; Circular 23 of 2026). No levy is due for a week with fewer than 23 paid hours.

Do I have to register employees who earn above the BCEA threshold?

Yes. MIBCO's FAQ says all Motor Industry employees must be registered regardless of whether they earn above the threshold, and Circular 36 of 2025 confirms every employee pays the council levy. The threshold only affects which Main Agreement clauses apply and whether provident fund membership is compulsory.

Can I submit MIBCO returns by email instead of the online system?

Yes. MIBCO accepts returns through MIBCO Returns Online or by email to [email protected]. Online is faster because the system generates a forecast from your last return and you only record the changes.

What happens if I pay MIBCO late?

Interest at 1,5 per cent, payable monthly, runs from the due date (cl. 23(1)), fund arrears attract Pension Funds Act interest (cl. 23(2)), collection costs can be added, and an arbitrator can fine a non-party employer that fails or refuses to register (cl. 10(4)); party employers are enforced through cl. 24 and LRA s.33A.

Does MIBCO apply to a petrol station?

Yes. Filling and service stations, including the attached convenience store, fall inside the "Motor Industry" definition (Administrative Agreement cl. 3, item 7) and are Sector 5 under the Main Agreement. Sector 5 employers pay the medical insurance allowance (R90 a month from 1 September 2026, cl. 15(2)(b)) as wages, but Medical Health Insurance Scheme contributions for forecourt attendants, chars and cashiers who have not opted out are deducted and paid over through the MIBCO return (Circular 02 of 2026).

Sources

Compliance Radar builds bargaining council returns from your payroll export, so MIBCO occupation codes, the 23-hour rule, fund flags and engagement and termination dates are applied once and reused every month. See how it works on the home page or contact us.

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Compliance Radar provides compliance tooling and information to help you manage your obligations. It does not provide legal advice and is not a substitute for a qualified professional.