The South African Municipal Workers’ Union (SAMWU) finally reached an agreement with the South African Local Government Association (SALGA), on Friday.
The agreement was reached after three intense rounds of negotiations, making it the first time ever in South Africa, that a 5-year salary and wage collective agreement is reached.
The agreement, is effective from 1 July 2024 to 30 June 2029.
About 300 000 municipal workers, will be affected by the agreement.
Speaking about the details of the agreement, Dumisani Magagula, SAMWU’s General Secretary, said workers will receive a 6% salary and wage increase, payable in the first year of the agreement (2024/2025 financial year).
A 4.5% increase, is effective from 1 July 2024, with an additional 1.5% increase, payable by 1 March 2025.
Workers will receive a salary increase of CPI plus 0.75%.
Salary increases will be pegged at CPI plus 1.25%, in the next year’s (2026-2028).
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.