Existing members and employees of the Motor Industry Provident Fund are Division B Classes 7 and 8 and are Trainees. Employee Contributions – 7.5% of Basic Income plus fees capped at R10,394.80 per month (applicable for the period from 1 September 2011 to 31 August 2012) Provident Fund Calculation on Percentage Basis example
About Mibco
The Labour Relations Act Provides for the self-regulation of Industries through the medium of Bargaining Councils. MIBCO is a Bargaining Council as envisaged in the Act whose mission is to create and maintain industrial peace and stability in the Motor Industry.
Auto Workers Provident fund
Existing Auto workers Provident fund members and new engagements from grades 1-6
| Weekly contribution | ||
| Employee | Employer | Total |
| 7.5 | 8 | 15.5 |
Employee contribution – 7.5% of Basic earnings plus commission to a limit of R 10 394.80 p/m
(Applicable for the period 01 September 2011 to 31 August 2012)
Motor Industry Provident Fund
Existing Motor Industry Provident Fund members and employees is Division B grades 7 & 8 and apprentices.
| Weekly contribution | ||
| Employee | Employer | Total |
| 7.5 | 8 | 15.5 |
Employee contribution – 7.5% of Basic earnings plus commission to a limit of R 10 394.80 p/m
(Applicable for the period 01 September 2011 to 31 August 2012)
Example for Provident Fund calculations based on percentage
| Ex1: | An employee receives a pensionable remuneration of R 360.00 per week | ||
| Deduction of 7.5 % | R 27.00 | ||
| Employers amount 8% | R 28.80 | ||
| Total | R 55.80 |
| Ex2: | An employee receives a pensionable remuneration of R 1680.00 per month | |
| Reduce to weekly – R 1680 x 12/52 = R 387.69 pw | ||
| Deduction of 7.5 % | R 29.06 | |
| Employers amount 8% | R 31.02 | |
| Total | R 60.10 |
| Ex3: | An employee receives a pensionable salary of R 2000 per month & a commission of R 5000 for a particular month | |
| Reduced to weekly – (R200 + R 5000) x 12/52 = R 1615.39 | ||
| Deduction of 7.5 % | R 121.16 | |
| Employers amount 8% | R 129.23 | |
| Total | R 250.39 |