A plain guide to the National Bargaining Council for the Chemical Industry: who falls under it, what the monthly levy return contains, when it is due, and how exemptions and penalties work.
The National Bargaining Council for the Chemical Industry (NBCCI) is the bargaining council registered under the Labour Relations Act 66 of 1995 (LRA s.27) for the chemical industry nationally. Registered on 3 December 2001, it sits at 70 Fox Street, Marshalltown, Johannesburg. Its powers come from LRA s.28(1): concluding and enforcing sector collective agreements and preventing and resolving disputes, including the LRA s.51 functions. The power to levy employers and employees is not in s.28(1): it comes from the council's constitution (clause 3(1)(l), with the employee share set equal to the employer share) and is applied to employers through the income and expenses clause of each sector agreement, and to non-party employers once that agreement is extended under LRA s.32.
If you make, process or distribute chemical products, including paint, fertiliser, explosives, fuel, medicines, glass or consumer chemicals such as soap and detergent, you are probably in scope. The registered scope is defined in clause 2 and Schedule 1 of the council's constitution.
The scope covers nine sectors, grouped into five bargaining chambers. Each chamber signs its own collective agreement with its own minimum wages, allowances and leave rules; increases usually take effect on 1 July.
| Chamber | Sectors covered | Party employer organisation |
|---|---|---|
| Industrial Chemicals | Base chemicals, speciality chemicals, surface coatings (paint), fertilisers, explosives | One per sector: National Base Chemicals, National Speciality Chemicals, Surface Coating Industry, Fertiliser Industry and Explosives Industry Employers' Associations |
| Petroleum | Petroleum refining and distribution | National Petroleum Employers' Association |
| Pharmaceutical | Manufacture, processing and distribution (not wholesaling) of pharmaceuticals, biologicals and diagnostics | Labour Affairs Association of the Pharmaceutical Industry |
| Glass | Glass manufacturing | Glass Industry Employers' Association |
| FMCG | Fast-moving consumer goods and consumer chemicals | National Fast Moving Consumer Goods Employers' Association |
Five trade unions are party to the council: CEPPWAWU, SACWU, Solidarity, GIWUSA and NUMSA.
Most summaries miss this. For most of its life the NBCCI's agreements bound only "party" employers, meaning members of one of the nine employer organisations, and their employees. Non-party employers paid no levy and referred disputes to the CCMA.
That has changed. Under LRA s.32 the Minister can extend a council agreement to every employer in the sector. Glass went first: the 2023-2025 Glass Sector agreement was extended to non-parties by ministerial notice of 29 November 2024, binding them from 9 December 2024 to 30 June 2025. Government Gazette No. 53822 of 12 December 2025 then extended the 2025-2027 Glass agreement (GN R.6926) and the 2025 Petroleum agreement (GN R.6928); both bind non-parties from the second Monday after publication, 22 December 2025, Glass to 30 June 2027 and Petroleum to 30 June 2028. FMCG and Pharmaceutical followed in 2026. Once your sector's agreement is extended, its wages, conditions and levy clauses bind you whether or not you belong to an employer organisation, unless you hold an exemption.
Check your sector's extension notice on nbcci.org.za/documents. If it has been gazetted, levy deductions start from the date it binds non-parties, which the notice sets (usually the second Monday after publication), not from the gazette date itself.
Party employers are registered through their employer organisation: the council's FAQ says membership runs through an employers' association. If your sector's agreement has been extended and you are not a member, contact the secretariat ([email protected], 011 833 0922) to be registered as a non-party employer and to confirm how returns are submitted.
Have these ready:
Unlike MIBCO or the MEIBC, the NBCCI does not run its own provident, sick-pay or holiday funds. Its monthly return is a levy return: a schedule of employees, whether each sits inside or outside the bargaining unit, and the levy due. Two levies apply.
Paid for employees in the bargaining unit: those whose wages and conditions are negotiated by the party unions.
Paid for employees outside the bargaining unit, usually management and above, who use only the council's dispute function.
| Employee category | Total per month from 1 Jan 2024 (levy notice, 12 Dec 2023) | Total per month from 1 Jan 2025 (AGM 2024 Report) |
|---|---|---|
| Inside the bargaining unit | R29.00 (R14.50 employee + R14.50 employer) | R30.61, split 50/50 |
| Outside the bargaining unit | R24.00 (R12.00 employee + R12.00 employer) | R26.03, split 50/50 |
Do not treat either column as current. The last standalone levy notice on the council's documents page (12 December 2023) set R29.00 and R24.00 from 1 January 2024. The council's AGM 2024 Report then records a 6.5% increase put to the November 2024 AGM, taking the levies to R30.61 and R26.03 from 1 January 2025, each split equally (the exact per-share amount depends on the rounding adopted at the AGM). The sector agreements provide for the levy to be increased each year subject to AGM approval, so further increases follow each November AGM and the 2025 figures are themselves likely out of date. Confirm the current rate with the secretariat before you set up the deductions. Whatever the rate, the constitution requires the employee share to equal the employer share. The employee share may be deducted without individual written consent because a collective agreement requires it (BCEA s.34(1)(b)). There is no industry-wide definition of "bargaining unit": each company's unit is set by its own recognition agreement, so decide the split once, record it and apply it consistently.
The levy is deducted at month-end and is payable to the council within the first seven days of the following month, so January's levy is due by 7 February. Treat the 7th as the hard date for payment and schedule. Sector agreements run from 1 July and wage rates change on that date (constitution clause 15(12)), so expect new wage rates in the July return. Levy changes follow a different cycle: they are approved at the council's November AGM and have taken effect on 1 January, so expect a levy change in the January return and watch for the council's post-AGM notice. Our SA employer compliance calendar lists these dates alongside PAYE, UIF and COIDA deadlines.
Retirement, medical aid and other benefit contributions are set by each chamber's collective agreement and paid to the relevant fund, not to the council. The Pharmaceutical agreement, for example, requires the employer to pay at least half of the medical aid contribution for employees on a scheme. Read your chamber's current agreement and confirm banking details with the fund administrator. Never bundle fund money into the levy payment.
Clause 16 of the constitution and the Exemptions Policy and Procedure approved on 22 April 2024 govern exemptions from wages, levies or other clauses. The main rules:
The council enforces its agreements under LRA s.33A. Designated agents may enter a workplace, inspect records and question the employer, and an arbitrator may order payment of arrears and impose a fine. Sector agreements add a 3.5% penalty on dishonoured levy payments plus the council's legal costs. Keep wage, time and levy records for three years (BCEA s.31). Paying below an extended agreement's rates is a separate breach, so align rates every July.
The same workflow applies to other councils: see the bargaining council returns hub, the NBCRFLI guide and the labour law compliance checklist. For the BCEA rules the sector agreements build on, see annual leave accrual and notice periods.
Employers that are members of one of the nine party employer organisations, and their employees. Non-party employers become liable once the Minister extends their sector's agreement under LRA s.32, as happened for Glass from 9 December 2024 (the 2023-2025 agreement), for Glass and Petroleum from 22 December 2025 (Government Gazette No. 53822 of 12 December 2025, GN R.6926 and R.6928) and for FMCG and Pharmaceutical in 2026.
The levy is deducted at month-end and must reach the council within the first seven days of the following month. Submit the levy schedule with the payment.
The last standalone levy notice (12 December 2023) set R29.00 per month for employees in the bargaining unit and R24.00 for employees outside it from 1 January 2024, split equally between employer and employee. The council's AGM 2024 Report records an increase to R30.61 and R26.03 from 1 January 2025, subject to the rounding adopted at the AGM, and further increases are approved at each November AGM. Confirm the current rate with the secretariat; only the 50/50 split is fixed.
No. The council collects levies only. Retirement and medical contributions are set by each chamber's collective agreement and paid directly to the relevant fund.
Yes. The exemptions policy has an SMME route that allows exemptions of up to three years from wage increases or specific clauses, provided the business is not a subsidiary, meets the SME definition and can show the exemption will retain or create jobs. Apply on Form C6 with financials and proof of consultation.
Compliance Radar connects to your payroll, tags employees by chamber and bargaining unit, builds the monthly NBCCI levy schedule, and reminds you before the 7th. It also tracks the July agreement cycle and exemption expiry dates. Talk to us if you run a chemical-industry payroll.
See it on a payroll like yours.
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