The Motor Industry Bargaining Council (MIBCO) has published its wage tables for the 2024/2025 financial year, detailing the minimum wage for a motor vehicle salesperson in South Africa.
The data shows that, from September 2024 onwards, the minimum wage for employees in the vehicle sales sector will be R1,963.62 per week, which adds up to R8,509.02 per month.
This is for an individual spending their first year in the industry, however, those with more experience under their belt are entitled to higher remuneration.
The table below, as provided by MIBCO, details the minimum wages a motor vehicle salesperson is entitled to in South Africa starting 1 September:
| Experience level | Weekly wages | Monthly wages | Yearly wages | Guaranteed increases |
|---|---|---|---|---|
| 1 year | R1,963.62 | R8,509.02 | R102,108.24 | R77.50 p/w |
| Over 1 year | R2,531.70 | R10,970.70 | R131,648.40 | R120.56 p/w |
Average salary of a car salesman
While the minimum paycheck of a car salesman in the country is determined by the Minister of Employment and Labour, data from Talent shows that the average person in this line of work earns considerably more.
The career platform notes that the mean salary for a car salesperson is R4,615 per week, equating to roughly R20,000 per month, or R240,000 per year.
Entry-level positions start at R139,200 per year, while the most experienced workers make up to R420,003 per year.
This figure is based on 1,271 earners who revealed their income to Talent.
The most likely reasons for these discrepancies come down to two factors – the dealer whom they work for, and commissions earned from sales.
Dealers are allowed to set their base pay at any rate above the minimum wages detailed in the MIBCO tables, hence, to attract and retain talented salespeople, they will offer more enticing packages than their rivals, which is generally above what the law dictates.
Additionally, depending on the company, a salesperson may earn a commission on every transaction.
Generally speaking, a commission is calculated as a percentage of the value of the sale and is awarded to the employee for their work.
At the end of the month, these amounts can tally up to a substantial remuneration package, usually noticeably far higher than the minimum threshold.
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