Office Hours Mon-Fri: 08:00-16:30 | Call Center +27 12 369 8000
Home | Contact Us


Upcoming Events


Quick Links

SALGA National Working Groups

SALGA Women's Commission

SALGA Council of Speakers

SALGA Council of Mayors


Social Media

Follow Us on Social Media




Salary And Wage Negotiations For Municipal Employees SALGA Tables Final Offer Of 6.6% To Municipal Trade Unions


Posted: 18 April 2018


At the end of the 4th and final round of salary and wage negotiations for municipal employees held from 16-18 April 2018 in Durban, SALGA tabled a final offer of 6,6% supplemented by inflation linked increases in the outer years of a three (3 year) wage deal. The final offer was presented by SALGA with a view of seeking to secure an agreement with the unions at the negotiating table.

The trade unions formally recorded their revised offer of 8% across the board, a minimum wage of R7393.00 and significantly above inflation increases for year two (2) and three (3) of the agreement. The unions further demanded that employees whose income is regarded as too low to access mortgage finance but also too high to qualify for RDP housing, should receive a non-pensionable allowance of R378.00. Over and above this, the unions also demanded that the threshold for this category of employees should be elevated from R8000.00 to R15 000.00. Included in their demand is an upward monetary and percentage adjustment to the current homeowner allowance as well as the medical aid subsidy year on year by the same level of salary increases.

The effect of the demands by the unions will increase the current municipal wage bill from R87.3 billion to R94.9 billion.

Upon tabling their final positions and in an attempt to reach a negotiated settlement and take parties out of the impasse in negotiations, the parties have thus resolved to go back to their constituencies to seek a mandate on the proposed agreement put together by the facilitator appointed to oversee these negotiations.

The main elements of the facilitator proposal can be summarised as follows: 

•    An across the board 7% salary & wage increase with effect from 1 July 2018.
•    Employees who earn a basic salary of R9000.00 per month or less shall receive a further 0.5% increase with effect from 1 January 2019.
•    The minimum wage, the homeowner's allowance, and the medical aid employer contribution will be adjusted by the percentage of salary increases for the 3-year duration of the salary and wage agreement.
•    The Non-Pensionable Allowance for the GAP market employees will remain unchanged from its current level of R350 and will only be adjusted in year two (2) and year three (3) of the agreement by the same percentage as the salary and wage increase applicable for those years.
•    The parties further resolved to conclude the retirement fund restructuring process in a separate collective agreement.

SALGA will forthwith commence with the process of consulting municipalities for a final mandate on the settlement terms proposed by the facilitator. The parties have expressed their commitment to securing an agreement that is in the best interest of the local government sector at a time of severe financial challenges faced by municipalities.
Previous News Pages: 1 2 3

Site Map:

Welcome to SALGA
Our Constitution
Governance Framework
Our Structure
Executive Management Team
National Executive Committee
Provincial Executive Committee
National Working Groups
Provincial Working Groups
Provincial Overviews

Media Room
Press Releases
Media Statements
Image Gallery
SALGA Media Enquiries


Municipal Focus
About Municipalities
Guidelines for Municipalities
Municipal Audit Outcomes
Municipal Finance
Municipal Planning
Treasury Reports
Municipal Contact Details

Documents and Publications
Annual Reports
Annual Performance Plans
Strategic Plans
Corporate Presentation
Voice Magazine
National Members Assembly
National Municipal Managers Forum


Knowledge Hub
Energy Efficiency & Renewable Energy
SALGA Lexis Nexis Legal Content
Good Governance Learning Network
Learning Framework for Local Government
Local Government Briefs
Knowledge Hub Documents
Knowlede Hub Publications
Knowledge Portals

Stakeholder Relations
Stakeholder Management Framework
Stakeholder Management Directory



Suppliers & Vendors
Tender Notices
Terms of Reference for Tenders
Responsive Bidders to Tenders
Results to Bids
Central Supplier Database
Standard Bid Documents
Evaluation Criteria for Procurement
Government Procurement Conditions of Contract
Request for Proposals

SALGA Offices

Copyright © 2017
Legal Notice Disclaimer

Social Media