NBCPSS Levy Extension: What the 2026 Amending Agreement Means for Employers
On 30 March 2026, the Minister of Employment and Labour published a notice in the Government Gazette extending the National Bargaining Council for the Private Security Sector (NBCPSS) Council Levies Collective Amending Agreement to non-parties. This extension, issued in terms of the Labour Relations Act (LRA), has material consequences for all employers operating in the private security industry, regardless of whether they belong to an employers’ organisation party to the Council.
The notice reinforces the central role played by the NBCPSS in regulating sector-wide obligations and underscores the state’s continued use of extension mechanisms to promote uniformity, compliance and financial sustainability within bargaining councils.
The substance of the amending agreement
At its core, the notice gives legal force to an agreement concluded within the NBCPSS that amends existing council levy arrangements. Council levies are not new to employers in the sector. They are a long-standing mechanism through which the NBCPSS funds its statutory and regulatory functions, including dispute resolution, compliance inspections, administration of collective agreements and engagement with stakeholders.
The 2026 amending agreement adjusts the structure and/or level of these levies. While the precise figures and formulas are set out in the agreement itself, the practical effect is that employers are required to contribute financially to the Council in accordance with the amended levy provisions. Importantly, the extension means that non‑party employers – including smaller operations and employers who have deliberately opted to remain outside the Council – are brought squarely within the scope of these obligations.
From the effective date stipulated in the notice, the amended levies become enforceable against all employers falling within the registered scope of the NBCPSS.
Legal basis for extension to non-parties
The Minister’s power to extend collective agreements is derived from section 32 of the LRA. Where representative trade unions and employers’ organisations that are party to a bargaining council agreement meet the statutory representativity thresholds, the Minister may extend that agreement to non-parties in the sector.
By issuing this notice, the Minister confirms that the jurisdictional requirements have been met and that the extension is considered appropriate for the private security industry as a whole. For employers, this is a clear signal that opting out of council membership does not equate to exemption from sectoral regulation once an agreement is extended.
Financial impact on employers
The most immediate impact of the notice is cost-related. Levy obligations increase the fixed monthly or periodic expenses of employers, over and above wages, statutory contributions and other compliance costs already borne in the industry.
For large employers with established payroll systems and compliance teams, the adjustment may be administrative rather than existential. However, for small and medium-sized security businesses, particularly those operating on thin margins or affected by pricing pressures from clients, the additional levy burden may be felt more acutely.
Employers must ensure that budgeting, forecasting and pricing models are updated to accommodate the amended levies. Failure to do so may expose businesses to cash-flow challenges, especially where levy enforcement is coupled with interest, penalties or compliance proceedings.
Compliance and enforcement considerations
Once extended, levy obligations acquire the same legal status as if the employer were a party to the agreement. This has several consequences:
Employers must register with the NBCPSS where required, submit accurate returns and pay levies within prescribed timeframes. Non-compliance may result in invoicing disputes, inspections, enforcement actions or referral to dispute resolution processes within the Council.
The extension also strengthens the NBCPSS’s hand in enforcement. Bargaining councils are empowered to monitor compliance across the sector, and levy extensions often coincide with increased compliance activity as councils seek to stabilise their revenue base.
Employers who have historically operated outside council structures may face a steep learning curve in understanding reporting obligations and council procedures.
Strategic implications for non‑party employers
For non‑party employers, the extension raises a strategic question: whether continued non‑participation in the NBCPSS remains viable. Once levy obligations apply regardless of membership, some employers may reassess the value of joining an employers’ organisation within the Council in order to gain influence, access support structures and participate in negotiations that determine future obligations.
Remaining outside the Council while being bound by its financial requirements may result in a lack of voice in amendments that directly affect operating costs.
Industry-wide effects
At an industry level, the extension of the amending agreement aims to promote uniformity and stability. Levy income supports the functioning of the NBCPSS, including enforcement of minimum standards and dispute-resolution mechanisms that contribute to labour stability in an industry historically characterised by high levels of conflict and non-compliance.
From a policy perspective, the extension aligns with government’s broader objective of strengthening bargaining councils and reducing regulatory fragmentation across sectors.
However, there is a risk that rising compliance costs may exacerbate existing challenges, particularly unlawful undercutting by non-compliant operators. Employers who comply with levy obligations may face competitive pressure from entities that evade registration or operate informally, highlighting the importance of effective enforcement.
Practical steps for employers
In light of the notice, employers should take several immediate steps. These include reviewing the amending agreement in detail, assessing the financial implications for their operations, and ensuring that payroll and accounting systems are capable of accommodating the amended levies.
Legal and labour advice may be necessary to confirm scope coverage, effective dates and compliance obligations. Employers should also monitor communications from the NBCPSS regarding registration, invoicing and enforcement processes.
Conclusion
The extension of the NBCPSS Council Levies Collective Amending Agreement to non-parties is not merely a technical regulatory update. It has tangible financial, operational and strategic implications for employers across the private security industry.
By binding all employers to the amended levy framework, the notice reinforces the centralised regulatory model underpinning the sector. Employers who respond proactively, understand their obligations and integrate compliance into their business planning will be better positioned to manage the impact and avoid unnecessary disputes or costs in the months ahead.
Read the NBCPSS Extension to Non-Parties of the Council Levies Collective Amending Agreement 2026 Here.
