The Metal Industries Benefit Fund Administrators (MIBFA) is an organisation that administers the pension, provident and related funds of workers in the metal and engineering industries in South Africa. MIBFA also provides other benefits, such as medical and disability benefits, to eligible members and their dependents. Levies are also collected by MIBFA on behalf of the Metal and Engineering Industries Bargaining Council (MEIBC).
SimplePay allows you to generate a single report reflecting all information and contributions that need to be reported to MIBFA. These contributions may include levies, contributions to a sick pay fund, as well as contributions to the Engineering Industries Pension Fund (EIPF) or to the Metal Industries Provident Fund (MIPF).
Enabling MIBFA Functionality
You need to contact our Support Team to have the Bargaining Council feature enabled.
- Once the feature is enabled, go to Settings > Advanced > General.
- Select the checkbox Bargaining Council (Beta).
- Select “MIBFA” from the dropdown menu next to Industrial Council.
- Click Save.
Creating Custom Items
Custom Items are needed to account for the various levies, pay amounts, and shifts worked.
Where applicable, create the following Custom Items:
- Council Administration Employee Levy
- Council Collective Bargaining Employee Levy
- Council Dispute Resolution Employee Levy
- Sick Pay Employee Levy
Follow the steps below for each of 1. – 4. above.
- Go to Settings > Custom Items > Add.
- Click Deduction as the Custom Item type.
- Enter a name.
- Select “Fixed Amount” next to Input type.
- Enter the amount.
- Click Save.
- Council Voluntary Leave Enhancement Pay
- Sick Pay Employer Amount
Follow the steps below for each of 5. and 6. above.
- Go to Settings > Custom Items > Add.
- Click Benefit as the Custom Item type.
- Enter a name.
- Select “Fixed Amount” next to Input type.
- Enter the amount.
- Ensure you have ticked the Bargaining Council Item checkbox.
- Click Save.
- EIPF/MIPF Shifts Worked
Follow the steps below for 7. above.
- Go to Settings > Custom Items > Add.
- Click Informational as the Custom Item type.
Please note: The Informational Custom Item type will be available only if the Bargaining Council feature has been enabled as mentioned above.
- Enter a name.
- Select “Formula” next to Input type.
- Enter the following formula:
= if(hourly_paid, shifts_worked, default_days_worked – days_with_leave_for_system_type(“unpaid”))
- Click Save.
Please note: This Informational Custom Item must be added under Regular Inputs for all employees. The Shifts Worked will be automatically calculated based on their Regular Hours as well as any unpaid leave taken.
These Custom Items will then need to be mapped when configuring the inputs of the report. More information on Custom Items can be found by clicking on the link below.
Creating Templates
Creating Templates for all the Bargaining Council items will be a quick and efficient way to assign all required and recurring items to the relevant employees instead of adding each item. You can create a Template as follows:
- Go to Settings > Templates > Add New Template.
- Give the template a name, such as Bargaining Council Employees.
- Click Save.
- Add the created Custom Items as mentioned above under Normal Items.
This Template can now be assigned to employees. To do so:
- Go to an employee’s profile.
- Click Add (next to Regular Inputs) and select your template from the Templates section.
- Click Add Template.
More information on Bargaining Council Templates can be found by clicking on the link below.
Setting up Shifts
- Go to Settings > Payroll Calculations > Basic Pay.
- Select the Enable input of number of shifts checkbox.
To capture the Shifts Worked for hourly paid employees, go to Basic Salary under Payslip Inputs. SimplePay will automatically calculate the Shifts Worked for salaried employees based on their Regular Hours and any unpaid leave taken, using the Informational Custom Item mentioned above.
More information on shifts in Basic Pay Settings can be found by clicking on the link below.
Please note: As mentioned above, you will need to create an Informational Custom Item for EIPF/MIPF Shifts Worked. This Custom Item then needs to be mapped to the relevant shifts input before downloading the MIBFA TXT File.
Capturing Bank Details
You have the option to capture your banking information for the MIBFA file. This can be be captured in two places:
- EFT Settings
If you don’t make use of our EFT Settings functionality for paying employees, then you will just be required to enter your banking details without selecting an EFT file format.
More information on EFT Settings can be found by clicking on the link below.
- When downloading the MIBFA file.
You can also enter additional banking details when downloading the MIBFA file on the Report Setup page as mentioned below.
Setting up Job Grades
- Go to Settings > Job Grades.
- Add the relevant job grades.
More information on Job Grades can be found by clicking on the link below.
Creating Custom Employee Fields
To assign a Trade Union to an employee, you will be required to create two Custom Employee Fields:
1. Trade Union
- Go to Settings > Advanced > Custom Employee Fields > Add.
- Enter Trade Union as the name.
- As a Hint, enter ‘If you have selected “Other Trade Union”, please capture the trade union name in the Remarks field.’
- Select “Dropdown With Value” next to Input type.
- By clicking Add Option, you will be able to add the following fields:
- 00 – Employee is not a member of any union / no information is available
- 01 – United Association of South Africa (UASA)
- 04 – Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU)
- 07 – Metal and Electrical Workers Union of S.A. (MEWUSA)
- 08 – Solidarity
- 09 – National Union of Metalworkers of S.A. (NUMSA)
- 15 – Other Trade Union
Please note: Ensure that you have entered the code in the Value field and the trade union name / text in the Label field.
- Click Save.
2. Remarks (if you have selected “Other Trade Union” as the Trade Union)
- Go to Settings > Advanced > Custom Employee Fields > Add.
- Enter Remarks as the name.
- Select “Text” next to Input type.
- Click Save.
Once you have created Custom Employee Fields, you can complete these individually by navigating to each employee’s Basic Info page or in bulk by going to Employees > Bulk Actions.
More information on Custom Employee Fields and Bulk Actions can be found by clicking on the links below.
Pensionable Remuneration
MIBFA defines pensionable remuneration as the total remuneration paid to an employee, excluding only overtime pay, leave enhancement pay, and allowances.
Pensionable remuneration includes, in addition to the basic rate of pay, payment for Sick Leave, Family Responsibility Leave, Annual Leave, Public Holidays, and all bonuses other than the leave enhancement pay.
To ensure accurate mapping of employee and employer contributions, on the Report Setup page:
- Map the EIPF Employee and Employer Amounts to the Pension Fund item and
- MIPF Employee and Employer Amounts to the Provident Fund item.
More information on Retirement Funds can be found by clicking on the link below.
Downloading the MIBFA TXT File
Once all the above has been set up, you will now be able to generate and download a monthly TXT File.
Please note: Ensure that you have finalised all employee payslips before generating the report.
Initial Steps
- Go to Reports.
- Under Bargaining Council, click Export File.
- Select the Date Range by using the dropdown menu.
- Use the Click here link to configure the inputs of the report.
Configuring the Report
- On the Report Setup page, enter your unique Firm Number in the blank field.
- Map all the Employee and Payslips items using the dropdown menus.
- Enter your banking information under Bank Account Details.
Please note: You will be required to configure inputs on the Report Setup only once.
- Enter the required information under Monthly Inputs.
Please note: You will need to capture Monthly Inputs each month when generating the MIBFA TXT file.
- Click Save after you have completed all of the above.
Downloading the Report
- Click Download TXT.
The downloaded file can now be sent to MIBFA.
Submitting to MIBFA
Once you have generated and downloaded the MIBFA TXT file, you will be able to submit it to MIBFA. This can be done via their website here. You will be required to log in with your Firm Number as the Username and your Password that you have obtained from MIBFA. Please contact MIBFA for more information.