Nearly 295,000 municipal workers across South Africa are set to receive a 4.75% salary increase as part of a wage agreement concluded at the SALGBC. Picture Credit: Facebook
By Aisha Zardad
South Africa – Nearly 295,000 municipal employees across South Africa are expected to receive a 4.75% salary increase this year, alongside adjustments to housing allowances and employer medical aid contributions.
The increase forms part of a multi-year wage agreement concluded in September 2024 after lengthy negotiations at the South African Local Government Bargaining Council (SALGBC).
From July, the minimum wage in the country’s 257 municipalities will rise from R10,600 to R11,100 per month. The homeowners’ allowance will increase from R1,170 to R1,225, while employer contributions to medical aid will rise from R5,971 to just under R6,100.
SALGBC general secretary Bill Govender informed municipal managers on Friday that municipalities are expected to implement the agreed adjustments.
However, the agreement also allows municipalities to apply for exemptions if they are unable to implement the increases. Applications must be submitted within 30 days of the approval of a municipality’s 2026/27 budget or by 30 June, whichever comes first.
The latest phase of the wage agreement comes amid ongoing labour disputes in some municipalities.
In the City of Tshwane, unions representing municipal employees recently reached a settlement over a 3.5% salary increase that was not implemented in July 2021 after the city obtained an exemption.
The exemption was later challenged at the SALGBC, where unions succeeded in having it dismissed. The bargaining council ordered the municipality to adjust employees’ salaries and pay back pay within six months.
However, the city warned that settling the nearly R1.1 billion back pay within that period would place significant strain on its finances, as it continues efforts to stabilise its budget.
According to the Independent Municipal and Allied Trade Union (Imatu) in Tshwane, organised labour and municipal officials have since worked together to find a practical solution to implement the outstanding salary adjustments.
Under the settlement agreement, the 3.5% back pay owed to workers — dating back to July 2021 — will be paid in instalments from June this year until February 2029.
Payments will begin with employees in the lowest salary brackets and gradually extend to those in the highest positions, Imatu said.
Meanwhile, municipal workers in Tshwane remain involved in another dispute relating to a 5.4% salary increase for the 2023/24 financial year.
Imatu confirmed that the matter is currently before Labour and Labour Appeal Court Judge President Mogomotsi Edwin Molahlehi after unions challenged a Labour Court ruling that granted the city an exemption.
At the same time, parties to the SALGBC — including the South African Local Government Association and the South African Municipal Workers’ Union — are engaged in negotiations aimed at establishing a new wage curve agreement for the sector.
If successful, the negotiations could introduce uniform pay scales across all municipalities in South Africa.
To support this process, Rosebank-based management consultancy 21st Century has been appointed to assist the bargaining council with analysing existing salary structures and collecting payroll data from municipalities nationwide.
The SALGBC has warned that municipalities must submit the required information promptly to ensure accurate analysis and prevent delays in finalising the wage curve negotiations.
