Mibco Agreement 2020

The MIBCO Agreement 2020: What You Need to Know

The Motor Industry Bargaining Council (MIBCO) is an organisation that represents the interests of employees and employers in the South African automotive industry. The MIBCO agreement is a legally binding document that outlines the terms and conditions of employment for workers in the sector. In this article, we’ll take a closer look at the MIBCO agreement for 2020 and what it means for those working in the automotive industry.

Wages and Benefits

One of the main areas covered in the MIBCO agreement is wages and benefits. In 2020, the minimum wage for employees in the automotive sector will be R3,558 per month for grade 1 workers. This wage will increase annually until 2022. Apart from basic salaries, workers can also expect benefits such as medical aid, life insurance, and retirement benefits.

Working Hours

The MIBCO agreement also specifies the working hours for employees in the industry. The standard working week is 45 hours, but employers may require their employees to work up to 50 hours per week. Overtime work must be compensated at a rate of at least 1.5 times the normal hourly rate. Employees are also entitled to a number of rest periods during the working day and week.


The agreement also covers leave entitlements for workers in the industry. Workers are entitled to annual leave of 18 days per year, with an additional day added for every completed year of service. In addition to this, workers are entitled to sick leave, family responsibility leave, and maternity leave.

Dispute Resolution

The MIBCO agreement also outlines a dispute resolution process for workers and employers. If a dispute cannot be resolved between the parties involved, it may be referred to the MIBCO Dispute Resolution Centre for mediation or arbitration.


The MIBCO agreement is an important document that sets out the terms and conditions of employment for workers in the automotive industry. It is a legal document that employers and employees must adhere to. The 2020 agreement covers a range of areas, including wages and benefits, working hours, leave entitlements, and dispute resolution. If you work in the automotive industry, it’s important to be familiar with the terms of the MIBCO agreement to ensure that you are receiving the correct wages and benefits and working under the correct conditions.