eThekwini Municipality has approved a 4.75% salary and wage increase for municipal employees, effective from July 1. This decision aligns with the collective agreement established by the South African Local Government Bargaining Council. The increase follows a benchmarking settlement reached in December 2025 between the municipality and the South African Municipal Workers’ Union. During a full council meeting, IFP councillor Ntombifuthi Ntshayintshayi emphasized the need for salary adjustments to meaningfully improve workers’ lives amid rising living costs. The municipality has accounted for the financial implications of this increase in its draft budget for the 2026/2027 fiscal year, which totals R75.5 billion.
Why It Matters
This salary increase is significant as it addresses ongoing concerns about pay disparities between municipal employees in eThekwini and their counterparts in other South African metropolitan areas. The prior benchmarking agreement aimed to ensure fair compensation, which had been a point of contention for workers advocating for pay parity. With the municipality allocating an additional R500 million annually to cover these increases, the financial sustainability of such adjustments is crucial. The current economic climate, marked by rising costs, further underscores the importance of ensuring that salary increases translate into better living conditions for municipal workers.
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