Municipal workers set for a 4.75% salary increase amid ongoing negotiations

Thousands of municipal workers nationwide are in line for a 4.75% salary increase and similar improvement to their homeowners’ allowances and employer medical aid contributions. The country’s 295,000 municipal workers are set to receive an increase of 4.75% in theirsalaries, homeowners’ allowance, and employer medical aid contributions, and the local government sector’s monthly minimum wage will rise to R11,100. From July this year, the minimum wage across the 257 municipalities will increase from R10,600 to R11,100, the homeowners’ allowance from R1,170 to R1,225, and the employer’s medical aid contributions to improve from R5,971 to just below R6,100.

The increases are part of the wage agreement signed in September 2024 following protracted negotiations at the SA Local Government Bargaining Council (SALGBC). SALGBC General Secretary Bill Govender informed municipal managers on Friday that the bargaining council requests that all municipalities adhere to and implement the increases. The September 2024 agreement makes provision for any municipality to apply for an exemption from having to implement any provisions of the deal within 30 days of the approval of the budget of a municipality for the 2026/27 financial year or June 30, whichever is the sooner.

The 2026/27 leg of the agreement comes as unions representing City of Tshwane employees signed a deal,the 3.5% that was not implemented in July 2021 after the municipality secured an exemption, which was subsequently reviewed and referred back to the SALGBC. the 3.5% that was not implemented in July 2021 after the municipality secured an exemption At the bargaining council, the unions succeeded, and the exemption was dismissed, and the municipality was ordered to adjust workers’ wages and implement back pay within six months. However, theCity of Tshwaneappealed to unions asthe nearly R1.1 billion required to be paid within six months would place the municipality, currently on a path of financial recovery, under severe financial pressure.

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the nearly R1.1 billion required to be paid within six months would place the municipality, currently on a path of financial recovery, under severe financial pressure According to the Independent Municipal and Allied Trade Union (Imatu) in Tshwane, organised labour and the municipality engaged to find a practical solution to ensure that the 3.5% adjustment on salaries and benefits could be implemented at the beginning of this month. In terms of the settlement agreement, the back pay of 3.5% salary increases, which dates back to July 2021, will be paid from June this year until February 2029.

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