Municipal workers in the City of Tshwane are set to get a boost in their pockets after the metro agreed to pay out R1.088 billion in backdated salaries
Image: Oupa Mokoena / Indepedent Newspapers
Municipal workers in the City of Tshwane are set to get a boost in their pockets after the metro agreed to pay out R1.088 billion in backdated salaries, bringing an end to a long-running dispute over a 3.5% wage increase dating back to 2021.
The payment follows years of legal and political wrangling after the previous administration, led by former mayor Cilliers Brink, applied for exemption from the increase on the grounds of financial distress. The matter was ultimately referred back to the bargaining council, which ruled in favour of workers.
Tshwane Mayor Nasiphi Moya said the city had made settling the dispute a priority and opted not to pursue further litigation. She said the agreement, reached with labour unions, will see workers paid in phases over three years.
"Today, we are formally announcing the implementation of the 3.5% wage agreement. The 3.5% wage dispute dates back to the 2021 SALGA agreement with SAMWU and IMATU," Moya said.
She added that an immediate lump-sum payment would have risked the city’s financial stability, potentially affecting obligations to Eskom and other creditors.
"After arbitration and court processes, a final ruling on 31 October 2025 obliges the City to implement the 3.5% increase, backdated to 1 July 2021, with a potential R1.55 billion backpay exposure if paid as a lump sum. An immediate payout of that scale would severely strain our finances, impact commitments to Eskom and other creditors, and put our 1 July 2026 funded budget at risk," she added.
"This administration inherited both the legal obligation and the financial consequences. We had a choice: prolonged litigation and uncertainty, or accept the ruling and work with organised labour on a responsible solution. We chose resolution."
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