A reported 35 percent pay hike for McCarthy Chief Executive Officer Brand Pretorius was the result of an "administrative error", parent corporation Bidvest said on Friday.

"The matter has been fully investigated and Bidvest reports that Mr Pretorius was in fact granted a six percent salary increase," Bidvest said in a statement.

"This arose as a result of an administrative error in McCarthy's which has now been corrected. Bidvest regrets any inconvenience and embarrassment this may have caused to shareholders."

On Thursday, the Motor Industry Staff Association, a trade union criticised the increase in light of retrenchments that are currently taking place at McCarthy.

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