Frequently Asked Questions

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1. Are all building contractors legally obliged to register with the Building Industry Bargaining Council?

Yes, by the Minister of Labour? Publishing the Collective Agreement in a Government Gazette, the Collective Agreement becomes legally binding on all contractors within the scope of the Building Industry Bargaining Council (Cape of Good Hope) or the "BIBC".

4. If the employees confirm that they are treated fairly and are happy with their conditions of employment, is it still required of the building contractor (employer) to be registered with the BIBC?

The Collective Agreement is legally binding on ALL employees and employers in the Building Industry. Refer to Clause 6, 7 and Clause 8 of the Collective Agreement and the Labour Relations Act, No 66 of 1995 Sections 23 and 199.

5. Is it compulsory for all employees to contribute to the BIBC provident/pension fund, medical aid etc.?  Please confirm which memberships are compulsory.

Pension and Provident fund contributions are compulsory for all employees. Both the Employer and Employee contribute to this. These funds are "tailor-made" for the industry to take into account periods of work shortages, etc. In addition for making provision for retirement, it offers excellent death and disability benefits to the employees, as well as Funeral Cover. The medical aid is only for artisans and again contributions are paid for by both the employer and employee. The Holiday Fund is compulsory for all employees and is contributed by the employer and covers the employee's leave pay during the annual builders’ holiday - the BIBC pays this out to the employees. The Bonus fund is compulsory for all employees and is contributed by the employer and covers the employee's annual bonus - the BIBC pays this out to the employees. The Sick Fund is compulsory for all employees and is contributed by the employer and covers the employee's sick leave - the BIBC pays this out to the employees within the rules of the fund.

6. Under which Act would employee benefit contributions be legally binding?

Refer to the Collective Agreement (Clauses 31, 32, 33 and 34) and the Labour Relations Act, No 66 of 1995 Section 199.

8.  What is the cost of registering as an Employer?

There is no registration fee to register as an Employer with the BIBC.

9.  What is the cost of registering an Employee?

There is no registration fee to register an Employee with the BIBC.

10.  Who can join the Master Builders’ Association?

Please refer to the MBA's website at or contact them on 021 685 2625 for MBA membership details.

11. When does overtime get paid and at what rate?

An employee shall be paid in accordance with clause 21 of the Collective Agreement, all time worked in excess of the number of ordinary workings hours on any day shall be overtime. Refer to table in clause 20 for ordinary working hours. Overtime is calculated as follows:  at 1.5 the hourly rate, except on a Sunday when it must be paid at 2 times the normal rate.

12. How is the Employee paid for a Public Holiday?

All employees must be paid their normal basic daily wage for public holidays that fall on a normal working day, whether they work on the day or not, and irrespective if they had worked on the day before and after the public holiday. See clause 25

13. What rate is applicable where the employee works on a public holiday?

Any actual hours worked on a public holiday must be remunerated at the normal basic rate per hour for all actual hours worked (in addition to the payment for the day as above).

14. When do Casuals qualify for benefits?

Employees in the building industry qualify for benefits from their first day of work. The Collective Agreement does not recognize "casual" labour and all employees are covered by the agreement.

15. How do I register as an Employer at the BIBC?

Complete the necessary documentation with the supporting documentation (available on our website or phone 021 950 7433) and visit our offices where you will be assisted.

16. How do I register my Employees?

Complete the necessary documentation (available on our website or phone 021 950 7413), attach a copy of the employee’s bar coded ID and email to This email address is being protected from spambots. You need JavaScript enabled to view it. or fax to 021 950 7403.

15. What is needed to register a non SA Citizen employee at the BIBC?

These employees need their asylum seeker document or a passport stamped by home affairs to confirm the employee's work permit.

16. Who pays for family responsibility leave?

Family Responsibility Leave is not covered by the BIBC’s Collective Agreement and must be paid to employees in terms of the Basic Conditions of Employment Act (Section 27). This section applies to an employee who has been employed for more than 4 months and works at least 4 days per week. The employee is entitled to 3 days leave per year but only when an employee’s child (or adopted child) is born or sick or upon the death of a spouse or life-partner, a child (also adopted child), a parent (also adopted parent), a sibling, a grandchild or a grandparent. The employer may request reasonable proof and unused leave is not carried forward.

17. What is Overnight Away Allowance?

An employee that is required to work away from his normal residence must be paid a living away allowance. The current minimum living away allowance is R162per day, and the employee shall be provided with suitable accommodation. See clause 27   Should we not add that the employee also still needs to receive a contribution?

18. What is the Burial Repatriation benefit?

The loss of a loved one will always be the most traumatic event of families’ lives. In order to assist members during this time, a Burial Repatriation Benefit, over and above the funeral benefit, was established to help families to transport the deceased back home, if death occurred far from his/her home base.

19. Who qualifies for a Burial Repatriation benefit?

The Burial Repatriation benefit is only available if the claim qualifies for the funeral benefit

20. What is included in the Burial Repatriation Benefit?

This benefit includes transport of the deceased by road or air:

# from anywhere in South Africa, Lesotho, Swaziland, Zimbabwe, Botswana, Namibia or Mozambique (South of the 22° latitude);

# To a funeral home close to the place of burial in South Africa.
One relative may also accompany the remains to the funeral home, and if needed, overnight accommodation will be provided at no additional cost if death occurs within South Africa.

21. What procedure must be followed to find out if a member qualifies for a Burial Repatriation Benefit and how does the claims procedure work? (Continued)

Step 1: Please visit the Building Industry Retirement Funds Help Desk to lodge the funeral claim and to establish whether the claim qualifies for funeral benefits. You may also telephone the Retirement Funds Help Desk to establish whether the claim qualifies for the benefit.


The Help Desk Staff will then hand the claimant a leaflet as shown below on the next page (after they have filled in the HF and SANLAM numbers and specified the fund). This will assist the claimant when they contact the Sanlam Call Centre to access the burial repatriation benefit:

Step 2: Members’ next of kin can access this benefit either themselves or via the member’s employer, by calling Sanlam’s 24-hour specialised call centre on 0860 004 080. These calls can be answered in all the official South African languages. Callers must provide the following information:

• Name and identity number of deceased
• Name and code of fund or scheme (18674 or 18675)
• Place where the death occurred

22. What procedure must be followed to find out if a member qualifies for a Burial Repatriation Benefit and how does the claims procedure work? (Continued)

Burial Repatriation Benefit (Transportation)

 Please phone specialized call centre

0860 004 080


Name of Fund:-
Building Industry Pension W.P. 18674
Provident Fund W.P. 18675

Member no.      HF ……………………………………

                       SAN ……………………….…………

Member’s name ………………………………………..

Member/Beneficiary contact number

Member green bar-coded identity number

Place where the death occurred

23. How do I claim when an employee was on Sick Leave?

The Employer completes the Sick Fund Claim form with the sick certificate attached and fax or emails it to 021 950 7403 or This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it. . If banking details are provided and all information provided is correct, the claim will be completed within 24hrs. Please note that we are required by SARS to deduct tax for certain categories of employees and we are required to provide SARS with a Tax Number for all claims paid. We can therefore not process a claim unless a valid tax number is provided. The employee must have 90 daily contributions to qualify (current and previous year - by March members must have current contributions in order to qualify), so please ensure that you keep your contributions up to date.

24. Who qualifies for Medical Aid?

The Council administers a Medical Aid B.I.M.A.F. (W.P.) for Artisans in the Industry. It is not a traditional medical aid and is aimed at alleviating day-to-day medical expenses. Artisans must have 80 daily artisan contributions to qualify for membership.  Once an Artisan qualifies to become a BIMAF member, he or she must register with BIMAF at the BIBC’s offices. The rules and processes will be explained to all new members.

25. How do my Employees claim their Pension/Provident Benefits when they resign before retirement age?

Employees can claim their withdrawal benefits after being out of the Building Industry for six months. To claim any benefit they need to visit our offices and bring their green bar-coded identity document as well as their TAX NUMBER.  We cannot process the claim without a TAX NUMBER. Please make sure that you provide your employee with a tax number when they leave your employment.

26. What are "BIBC ID Cards"?

The Collective Agreement requires ALL employees to have a BIBC ID Card on them when they are on a site.  Please ensure that your employees bring their bar-coded identity document to obtain their FREE photo registration card from us. Employers can email their employees’ photo to the BIBC and the BIBC will print cards for the employees. Please phone/email Mrs. Adams at 021 950 7485 This email address is being protected from spambots. You need JavaScript enabled to view it. for more information...

27. What is the "Holiday Fund" and when does it get paid out?

The "Holiday Fund" is paid by the Employer to the BIBC during the year as part of the Daily Contribution. This is in lieu of leave pay for the annual Builder's Holiday in December each year. The Council will announce these dates by no later than June each year, and the BIBC will pay out the employees their Holiday or Leave Pay in the week before the annual holiday starts. The Bonus (also contributed by the Employer) will be paid with the Holiday or Leave Pay.

28. How and by when must the Contributions be paid to the BIBC?

Contributions to Employee Benefits must be done monthly. The returns and appropriate payment need to reach the Council by no later than the 7th day of the month following that for which the benefits are due to avoid interest on late payments.

The details that we require are:

# We need to know what benefits are required and for whom they are required. Having determined what benefit codes are applicable to each employee this information is submitted via the Detail Benefit Return Form. This reflects the employees’ holiday fund numbers, names, dates of birth, benefit codes and the number of benefits due for each week.
# We also require a Contribution Requisition. This is a summary of the above Detail Benefit Return. The total value reflected on the Contribution Requisition should agree with the total of your payment.

There are various ways in which these details can be returned to the Council. The requisitions are available under the Wage Schedule tab on the BIBC website (located on the home page at - click on the Wage Schedule Tab and choose the appropriate area). 

If you wish to submit your returns electronically, choose the  Detail benefit return (electronic) form, copy the result to an Excel file on your system and use it as a template to be completed and e-mailed (mail to This email address is being protected from spambots. You need JavaScript enabled to view it. ) to the Council monthly. Deal in a similar way with the Contribution Requisition form applicable to you. Your payment to us should then take place via electronic transfer to our account at First National Bank (see bank account details below).  Please use your employer number that has been allocated to you by the Council as the beneficiary reference. This is the preferred method of submitting your returns.
If you wish to submit your returns by fax (fax to 021-950 7406), post or delivery, choose the Detail benefit return (fax/post) form, print a copy and enter the appropriate detail manually. In a similar way, print the applicable Contribution requisition and complete this manually. These forms are then to be faxed or posted to us. Your payment can be made via electronic transfer or by cheque (see our bank details below). Please use your employer number that has been allocated to you by the Council as the beneficiary reference.   
Our bank details are:

Account name

BIBC (Cape)


First National Bank


Adderley Street

Branch Code


Account number


Please note that all cheques made out to us must be made out to: BIBC (Cape). This is our chosen trading name as per our Bank Mandates and the bank will not accept any cheques that are not made out to BIBC (Cape).