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South Africa's municipal workers will receive a staggered six percent wage increase after concluding a landmark five-year wage and salary agreement with the South African Local Government Association, Salga.
The SA Municipal Workers' Union says workers will receive a 4.5% increase, effective from 1 July 2024, with the additional 1.5% increase payable on 1 March 2025. next year.
SAMWU said this staggered increase ensures that municipal workers begin to receive the benefits as soon as possible while also easing the financial burden on them.
National spokesperson, Papike Mohale, said the five-year agreement was an “unprecedented achievement in both the local government sector and the broader public service”.
The agreement runs from 1 July 2024 to 30 June 2029, and according to Samwu represents stability, consistency, and long-term benefits for municipal workers across the country.
“By securing this long-term agreement, we have ensured that municipal workers will no longer be subject to short-term negotiations that only offer temporary relief. Instead, we have achieved lasting gains that will have a meaningful impact on workers’ livelihoods for years to come.
“The agreement will also afford the parties in the SALGBC the time and space needed to focus on pressing issues beyond salary negotiations,” Mohale said.
He added that the extended duration of the agreement will provide municipalities with the fiscal predictability necessary to improve planning, service delivery, and employee welfare.
“With the salary and wage agreement in place, the SALGBC can now turn its attention to other urgent matters affecting workers, including: provision of serviced stand, review of the main collective agreement, wage curve, municipal re-categorisation, COVID-19 compensation and the absorption of EPWP workers,” he added.
Details of the Agreement:
Workers will receive a 6% salary and wage increase, payable as follows:
This staggered increase ensures that municipal workers begin to receive the benefits as soon as possible while also easing the financial burden on them.
For these years, salary increases will be pegged at CPI plus 1.25%, offering even greater real wage growth for municipal workers. This marks a significant victory in securing tangible benefits over an extended period.
All conditions of service linked to salary increases—such as allowances—will increase by the same percentage in all financial years. However, in the first year of the agreement, Housing Allowance and employer contributions to medical aid will increase by 4.5%.
Employees earning R22,000 per month or less who do not currently receive any form of housing allowance will benefit from a once-off payment of R2,000 in the first year of the agreement, acknowledging the urgent need for housing support among low-income workers.
