Tshwane workers get 3.5% wage hike

Executive Mayor of the City of Tshwane Nasiphi Moya. Picture: Frennie Shivambu/Gallo Images Tshwane mayor Nasiphi Moya has announced the resolution of a 3.5% wage dispute dating back to 2021. “In September 2021, the South African Local Government Association (Salga), South African Municipal Workers’ Union (Samwu) and Independent Municipal and Allied Trade Union (Imatu) entered into a three-year salary agreement with Tshwane,” she said.

“The matter proceeded to the Labour Court. The court granted an exemption for 2023 but referred the 2021 increase back to Salga. “When the 2021 application was reheard, the arbitrator issued a final ruling on 31 October, 2025.

That ruling created a binding legal obligation to implement the 3.5% increase backdated to 1 July 2021,” she said. Moya said the immediate lump sum payment would have amounted to nearly R1.6 billion, which would have placed severe pressure on the city’s finances. “We had a choice.

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We could continue litigation and prolong uncertainty. Or we could accept the ruling in good faith and work with organised labour to structure a responsible solution. We chose resolution,” she said.

Moya said the agreement covers 21 089 employees. It will be paid over three years and calculated from 1 July 2021 on basic salary only, with payments to be staggered from 1 March. Deputy mayor and MMC of finance Eugene Modise said while they deal with the historical debt, workers can still expect their next increases.

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