The South African Municipal Workers’ Union (SAMWU) is pleased to announce the successful conclusion of long and rigorous salary and wage negotiations with the South African Local Government Association (SALGA), which represents the country’s 257 municipalities and their entities in the South African Local Government Bargaining Council (SALGBC). After three intense rounds of negotiations, held under the auspices of the SALGBC, the parties have arrived at a landmark agreement that will directly impact the lives of 300 000 municipal workers and their families.
For the first time in South Africa’s public service history, a 5-year salary and wage collective agreement has been reached, an unprecedented achievement in both the local government sector and the broader public service. This agreement, effective from 1 July 2024 to 30 June 2029, represents stability, consistency, and long-term benefits for municipal workers across the country. The extended duration of this agreement will provide municipalities with the fiscal predictability necessary to improve planning, service delivery, and employee welfare.
Details of the Agreement:
2024/25 Financial Year:
Workers will receive a 6% salary and wage increase, payable as follows:
– A 4.5% increase, effective from 1 July 2024
– An additional 1.5% increase, payable by 1 March 2025.
This staggered increase ensures that municipal workers begin to receive the benefits as soon as possible while also easing the financial burden on them.
2025/26 and 2026/27 Financial Years:
– Workers will receive a salary increase of CPI plus 0.75%. This ensures that wage growth will remain
above inflation, maintaining real income growth and safeguarding workers’ purchasing power.
2027/28 and 2028/29 Financial Years:
– 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.
Conditions of Service:
– 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%.
Housing Allowance for Low-Income Workers:
– 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.
Focus on Housing Access:
– The agreement recognises the critical need to improve access to housing for municipal workers. As such,
an investigation will be conducted to explore ways in which housing conditions for the country’s
municipal workers can be significantly improved. This investigation shall be concluded by March 2025.
SAMWU firmly believes that this salary and wage collective agreement is the best possible outcome for our members and the broader municipal workforce. The introduction of a 5-year agreement, the first of its kind, will provide a solid foundation for stability within the local government sector. Municipal workers are the backbone of service delivery, and this agreement reflects their critical role in keeping our cities and towns running smoothly.
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.
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 recategorisation, covid-19 compensation and the absorption of EPWP workers.
Municipalities must step up and ensure decent housing for their employees. Parties have agreed that the demand for service stands will be addressed on a municipality-by-municipality basis, but SAMWU will continue to push for equitable solutions across the board. The review of these critical components is long overdue. SAMWU remains committed to ensuring that the wage curve is adjusted to better reflect the realities faced by municipal workers.
SAMWU will continue to advocate for proper compensation for workers affected by the Covid-19 pandemic and for a fair categorisation of municipalities, ensuring that workers in smaller, less-resourced municipalities are not left behind. SAMWU remains determined to secure the permanent absorption of EPWP workers into the workforce, securing them stable employment and benefits.
As this historic collective agreement takes effect, SAMWU will remain vigilant in ensuring that every municipality fully complies with its terms. No worker should be deprived of the salary increases and benefits they are rightfully owed. We will not tolerate any attempts by municipalities to renege on the commitments made in this agreement. SAMWU will hold them accountable at every step to protect the gains we have achieved for our members.
Finally, SAMWU extends its heartfelt gratitude to all its members for their patience, trust, and unwavering confidence in the Union to represent their interests throughout these negotiations. We know the journey has been long, and we acknowledge the sacrifices made by workers. We are proud to have delivered a significant victory for our members—one that ensures salary increases dating back to 1 July 2024. Your faith in SAMWU has been vindicated.
Issued by SAMWU Secretariat