Blog

On 23 January 2026, the Minister of Employment and Labour published two significant notices in the Government Gazette (Nos. R.7015 and R.7016), extending the Motor Industry Provident Fund (MIPF) and the Auto Workers’ Provident Fund (AWPF) Collective Agreements to non‑party employers and employees across the motor industry. These extensions take effect from 2 February 2026 and remain in place until 31 August 2030.

These extensions are now binding on all employers and employees in the industry – including those not affiliated to MIBCO’s employer organisations or trade unions.

Fund Membership Rules

Membership to the MIPF is compulsory for all Division B Grade 7-8 employees, as well as apprentices who earn below the National Wage Threshold defined in the Main Agreement, and who have not reached retirement age.

Voluntary membership is available for directors of companies, members of close corporations, sole proprietors, and partners in businesses directly engaged in or in connection with the motor industry at the sole discretion of the Regional Council.
The AWPF continues to apply specifically to Division B Grade 7-8 employees and apprentices until they are formally transferred to the MIPF. This creates a transitional period during which employers must correctly identify which fund applies. Contributions to each of these funds are as follows:

• Employee contributions are 7.5% of pensionable remuneration.
• Employer contributions are 8% of pensionable remuneration.

Contributions must be deducted and paid monthly, must reach the Regional Council within 30 days after the month to which they relate, and must attract compound interest on late payment, calculated from the first day of the following month.

Exemptions

Where an employer previously belonged to a different retirement fund, the agreements allow continued use only if the alternative fund provides benefits “not less favourable” and the Council confirms compliance.

Employers may apply for exemption from any of the provisions set out in the agreements, but must satisfy strict criteria, including that:

• The alternative fund is a properly structured pension/provident/retirement fund registered in terms of the Pension Funds Act;
• The alternative fund provides equal or superior benefits;
• Contributions match or exceed industry fund requirements; and
• Waiting periods do not exceed six months.

Membership of an alternative fund meeting these criteria shall be compulsory if/when exemption is granted.

The Independent Board (a newly created statutory body) hears appeals when exemptions are refused and must issue decisions within 30 days.

Employers seeking to be exempted from the fund may not transfer to an alternate fund until exemption is granted and must continue making contributions until such time.

Administrative and Compliance Requirements

Employers must:

• Submit detailed monthly remittance schedules, including ID numbers and employment start/termination dates.
• Make records available to MIBCO agents for inspection.
• Allow agents access to wage sheets, time sheets, payslips, and other payroll documents.
• Use prescribed forms (Annexures A and B to the Provident Fund Agreement) for compulsory and voluntary membership.

Penalties shall apply where:

• Payments are dishonoured;
• Employers fail to comply with remittance deadlines; and/or
• Under‑declarations or non‑payments are discovered.

Next Steps

Reviewing and updating payroll systems, reassessing existing fund arrangements, ensuring compliance with the detailed administrative and reporting obligations, preparing for audits, budgeting for compulsory contributions, and considering whether to seek exemptions (knowing that approval will be difficult) now become critical and urgent.

Failure to comply exposes employers to penalties, interest, and retrospective liabilities.