Statistics South Africa will release March's retail sales figures on Wednesday.
A 5% increase has been approved for local government officials in 278 municipalities, which will cost around R90-million in state funds, the Sunday Times reports.
Executive mayors of the country's eight metropolitan municipalities, who all earned above R1-million per annum, would also get pay hikes.
The determination of salary increases was published by Co-operative Governance Minister Lechesa Tsenoli last week.
The salary increases for councillors include insurance in case they are attacked during a riot or outbreak of public disorder.
This followed the R45-million increase for ministers, premiers and high ranking MPs approved by President Jacob Zuma this year, despite a recommendation that all public office bearers earning above R1-million not get increases.
Chairpersons of committees at the country's smallest municipalities will get a minimum annual salary of R439 546. Members of mayoral committees in the biggest councils will get a maximum of R883 158.
'Very well compensated'
The recommendation was made by the Independent Commission for the Remuneration of Public Office Bearers.
Municipal IQ, a web-based data service that monitors the performance of the country's municipalities, said the high salaries of councillors showed why these positions were highly sought after.
"Full-time councillors are being very well compensated," managing director Kevin Allan was quoted as saying.
"In those councils, which have experienced multiple protests … one could really question what value a council is receiving for such significant salaries." – Sapa