The South African Road Passenger Bargaining Council has concluded the Main Collective Agreement for the 2026/2027 period. The agreement applies to the Road Passenger Transport Trade in South Africa and covers eligible employees and employers involved in the conveyance of passengers for reward on public roads, using vehicles intended to carry more than 16 people, including the driver.
The agreement comes into operation for parties from 1 April 2026 and will remain in force until 31 March 2027, or until it is replaced by a subsequent agreement. For non-parties, the agreement will apply from the date determined by the Minister of Employment and Labour in terms of section 32 of the Labour Relations Act.
Key changes and highlights
1. Across-the-board wage increase
Employees covered by the agreement will receive an across-the-board increase of 5.5% on the base hourly rate of pay. This increase applies from 1 April 2026 for parties to the agreement and from the Minister-determined date for non-parties, until 31 March 2027.
2. New minimum hourly rate
The minimum hourly rate for employees has been set at R54.10 per hour for the period 1 April 2026 to 31 March 2027.
3. Updated allowances
Several allowances have been updated for the new agreement period:
Subsistence and travel allowance
Employees who are required to sleep out and are not provided with accommodation will receive R883.67 per night. Where an employee is away from the employer’s establishment for more than 7 hours and 20 minutes, but is not required to sleep out, a meal allowance of R12.99 per completed hour will apply.
Night-shift allowance
Employees will receive R12.99 per hour for work performed between 20:00 and 03:00.
Tool allowance
Employees who are required to have the applicable tool kit, in line with the employer’s specifications, will receive a tool allowance of R63.03.
Cross-border allowance
Where employees are required to cross the South African border, the agreement provides for updated cross-border allowances, including R952.57 where the employee is required to sleep out outside South Africa, and R14.43 per completed hour where the employee is away for more than 7 hours and 20 minutes but is not required to sleep out.
Dual driver allowance
A dual driver allowance of R535.22 applies for the period 1 April 2026 to 31 March 2027, subject to the conditions of the agreement.
4. Ordinary hours of work and overtime
Ordinary hours of work may not exceed 45 hours per week. The agreement also allows for averaging of ordinary hours and overtime over a period of up to four months, provided the agreed limits are observed.
Overtime remains payable at 1.5 times the normal hourly rate on an ordinary day and double the normal hourly rate on a working day off. Sunday work is payable at 1.5 times the normal rate where Sunday is not the employee’s weekly day off.
The maximum permitted overtime may not exceed 15 hours per week.
5. Scheduling of work
Employers retain the right to schedule employees for ordinary hours of work. Where schedules are amended, employers must provide seven days’ notice before implementing the new schedules.
6. Leave provisions
The agreement confirms the following leave provisions:
Employees are entitled to annual leave of 15 working days for employees working a five-day week, or 18 working days for employees working a six-day week.
Family responsibility leave is set at eight days paid leave per annum, made up of up to five days compassionate leave and up to three days for matters such as the birth or illness of a child, or care of a spouse in relation to confinement.
Maternity leave remains 16 weeks paid maternity leave at 37% of the employee’s basic wage, commencing one month before the expected date of confinement, subject to the conditions of the agreement.
7. Retirement fund contributions
Membership of the retirement fund remains compulsory for employees covered by the agreement. Employer contributions may not be less than 10% of the employee’s basic wage, while employee contributions may not be less than 7.5% of the employee’s basic wage.
8. Bonus
Employees who are in service on the first day of December are entitled to a bonus equivalent to one month’s basic wages, subject to the conditions set out in the agreement.
9. Primary health care
Employers must offer the Affinity Reef option as a primary health scheme for employees only, with an employer contribution initially not exceeding R221 per month, subject to the conditions of the agreement.
10. Retrenchment and severance package
Where an employee qualifies for severance pay following dismissal for operational requirements, severance pay is calculated at two weeks’ severance pay for each completed year of service, subject to the conditions of the agreement.
11. Status quo protection
The agreement confirms that existing substantive terms and conditions of employment and benefits that are better than those contained in the Main Collective Agreement must remain in force. Employers may not reduce existing better benefits down to the minimum level contained in the agreement.
12. Registration requirement
All employers operating in the Road Passenger Transport Trade who employ eligible employees in terms of the agreement are required to register with SARPBAC.
Important note
This article provides a summary of the key highlights and changes in the 2026/2027 Main Collective Agreement. Employers and employees are encouraged to consult the full Main Collective Agreement for complete details, conditions and wording. Where there is any conflict between this summary and the official agreement, the official Main Collective Agreement will prevail.