Understanding Your Rights and Benefits as a Building Industry Employee

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Understanding Your Rights and Benefits as a Building Industry Employee

The Building Industry Bargaining Council (BIBC)

Cape Town, 10 September 2025 – If you work in the building industry in the Cape Peninsula area, it is your legal right to be registered with the Building Industry Bargaining Council (BIBC). Being registered is not just paperwork. It protects you, makes sure you are paid properly, and gives you access to important benefits.

“Every worker in the building industry has the right to be registered with the BIBC. Registration is your legal protection. It ensures you receive your minimum wage and all benefits due to you,” says Luyanda Mgqamqo, Council Spokesperson (Labour), BIBC.

The BIBC is a bargaining council registered by the Minister of Employment and Labour. It is a platform where trade unions and employer organisations come together to agree on fair wages, benefits, and working conditions for employees like you.

Trade Unions represented on the Council include Building Wood and Allied Workers’ Union of SA (BWAWUSA), Building Workers’ Union (BWU)and the National Union of Mineworkers (NUM). Employer organisations are representative of employers in the building industry.

“All employees and employers in the building industry must register with the BIBC,” continues Mgqamqo. “If your employer refuses to register you, this is illegal. Registration is how you get your wages, benefits, and protection under the law.”

When you are registered, you are entitled to a number of benefits that come with your employment.

  1. Wages

As of 01 November 2024, to 31 October 2025, the minimum daily wage, for the lowest category of employer, is R38.99 per hour. This wage is paid weekly, fortnightly, or monthly, depending on your employer.

  1. Holiday Fund

The Holiday Fund ensures that you get paid for leave days. Even if you work for different employers during the year, the fund keeps track of your leave pay. Payment is usually made in December.

  1. Bonus Fund

The Bonus Fund gives you extra money at the end of the year. This is separate from your normal wages and is also paid in December.

  1. Pension Fund

The Pension Fund protects your future.

  • Retirement benefit: You get a payout when you retire.
  • Emergency fund (Two-Pot system): Access money in case of urgent needs.
  • Funeral cover: Your family is protected if you pass away.
  • Repatriation: Helps with transport if needed.
  • Minor beneficiary trust: Your children or dependents can benefit.
  1. Sick Fund

If you qualify for sick leave, you will be paid a portion of your daily wages when you are sick and provide a valid medical certificate.

  1. Medical Aid for Artisans

If you are an artisan, you may access a medical aid to help cover healthcare costs.

  1. Free Labour Advice and CCMA (Commission for Conciliation, Mediation and Arbitration) Services

If you have problems at work, the BIBC offers free advice on your rights and help with disputes at the CCMA.

Let’s look at the example of Adam Brown who works on an EPWP project (first-time worker, not registered). His EPWP rate is R15.83 per hour, much less than even the minimum wage for employees in areas where there is no bargaining council (R28.79 per hour). Adam will receive no benefits. An employee working for a full month of 22 working days on an EPWP project will earn R 2 786.08 for the month with no benefits.

Now let’s look at the example of Sipho Cele who works as a BIBC-registered employee. In July, he earned R6,614.42 in wages before any deductions, plus R1,152.76 in benefits (Holiday Fund, Bonus Fund, Pension). His total pay including benefits was therefore R7,767.18 for that month. Cele’s holiday and bonus fund will be paid to him by the BIBC when the industry closes in December. His pension fund will be invested on his behalf. If he qualifies, he will also be paid a portion of his wages for each day that he is off sick.

This shows how registration significantly increases pay and protection. In addition, the Council publishes a new agreement every three years and the wages and benefits, that were used in the example of the BIBC-registered employee, will increase on 01 November 2025.

From your wages, the following deductions are allowed by law:

  • PAYE (Tax)
  • UIF (Unemployment Insurance Fund)
  • SDL (Skills Development Levy)
  • Trade Union dues (if you are a member)
  • Employee contribution to Pension Fund
  • BIBC levy

Your employer cannot deduct more than these amounts without your agreement.

What to do if you are not paid correctly:

  1. Check your payslip: Compare with the minimum BIBC rates.
  2. Ask your employer: Speak to them respectfully and ask why you were underpaid.
  3. Report to BIBC: If there is no proper reason, you can:
    • Email bibc@bibc.co.za: Send your payslip and explanation to the BIBC.
    • Call 021 950 7400: Speak to a BIBC administrator who can help.
    • Submit a Whistleblower Report online at www.bibc.co.za.

“You have the right to fair pay and benefits. If you are not receiving them, do not wait. Report it! The BIBC is here to protect you,” emphasises Luyanda Mgqamqo.

If you are not registered, you are missing out on money and protection that belong to you by law. “Remember that registration is your right. Your benefits and legal protection depend on it,” stresses Mgqamqo.

ENDS
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About the Building Industry Bargaining Council (BIBC):

Established by employer organisations and trade unions in the Western Cape’s building industry, the Building Industry Bargaining Council (BIBC) serves as a collaborative platform where both parties negotiate terms and conditions of employment through collective bargaining. Current members include the Master Builders Association Western Cape (MBA WC); MBA Boland; Consolidated Employers Organisation (CEO); Building, Wood and Allied Workers Union of South Africa (BWAWUSA); Building Workers’ Union (BWU); and the National Union of Mineworkers (NUM).

The Council promotes stable labour relations and contributes to a fair, just, and prosperous building industry by ensuring that workers receive agreed wages and benefits such as pensions and leave and that industry standards are maintained.

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