Municipal employees to get a 3.5% increase after wage deal

A collective wage agreement covering the years 2021, 2022 and 2023 has been agreed to at the South African Local Government Bargaining Council, sector association Salga has announced.

The deal package includes a multi-three year wage deal, pension fund reforms, a financial relief mechanism for municipalities in financial distress and for the terms of the agreement to be revisited should unforeseen negative economic circumstances arise during the period of the agreement, the South African Local Government Association (Salga) said.

Salga — an autonomous association covering all 257 South African local governments —  has been caught up in protracted salary and wage negotiations with the South African Municipal Workers Union and Independent Municipal & Allied Trade Union since March.

According to the collective agreement for the current financial year, all municipal employees will receive a 3.5% increase effective from 1 July this year. 

The remuneration of municipal employees will be adjusted every year with a once-off non-pensionable cash allowance for:

  • Employees earning a basic salary of R12 500 or less as of 1 July who will receive an amount of R4 000 and
  • Employees earning a basic salary of R12 501 or more as of 1 July who will get   R3 000

The agreement however imposes a zero increase in some benefits such as the homeowners allowance and medical aid. 

Salga said the deal meant that there would be stability in the sector, with no need for year-on-year wage negotiations. 

“The multi-three year collective agreement will enable municipalities to budget accurately in the medium term budgeting process,” the association said in a statement.

“Municipal employees will dedicate their full attention to rendering accelerated service delivery and the local government can also focus on preparing for the fifth democratic local government elections and the transition without any interruptions.” 

The local government elections will be held on 1 November.

Anathi Madubela is an Adamela Trust business reporter at the Mail & Guardian.

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Anathi Madubela
Anathi Madubela is a business journalist with a keen interest in the retail sector.

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