Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesMotor Industry Bargaining Council (MIBCO)Administrative Collective AgreementExtension to Non-Parties of the Administrative Collective AgreementClause 15 - Medical Insurance |
| (1) | Medical insurance is only applicable to Sector 5 employer establishments and their employees. |
| (2) | A medical insurance allowance is payable by employers to employees as follows— |
| (a) | R85.00 per month from the date of implementation as determined by the Minister of Employment and Labour to 31 August 2026; |
| (b) | R90.00 per month from 01 September 2026 to 31 August 2027; and |
| (c) | R95.00 per month from 01 September 2027 to 31 August 2028. |
| (3) | The medical insurance allowance shall be included in the employee’s wage and reflect on the employee’s payslip as an allowance. |
| (4) | The provision of a Medical Insurance benefit is to be introduced in a manner that ensures that all employees have some form of compulsory Medical Insurance to which they are associated. |
| (5) | An employee may exercise his or her right to opt out of the Medical Insurance benefit scheme and shall exercise his or her option to be excluded from this benefit scheme in the prescribed written manner, within 60 days of the date of the commencement of the scheme, or within 60 days of his date of becoming employed, whichever date occurs later: |
| (a) | If the election to opt out of the scheme is not made timeously, the employee shall be included in the scheme and shall not be able to opt out later, provided an exemption is granted in terms of the Main Collective Agreement of the Council. |
| (b) | Exemptions shall be considered and may be granted in instances of affordability of an employee or where an employee is a beneficiary of an alternative healthcare scheme or medical insurance. |