SALGA and organised labour conclude historic five-year collective agreement on salaries and wages at South African Local Government Negotiating Council

The South African Local Government Association (SALGA) and organized labor were represented at the South African Local Government Negotiations Council (SALGBC) have reached a landmark agreement, concluding salary and wage negotiations with a 6% increase for the current financial year. This agreement, which relates to consumer price inflation (CPI), spans five years and is a first in the history of the South African public service.

This unprecedented five-year salary and wage agreement is a historic achievement in both the local government sector and the wider public service. SALGA, which represents 257 municipalities across the country, together with the South African Union of Municipal Workers (SAMWU) and the Independent Municipal and Allied Trade Union (IMATU) are committed to the successful implementation of this agreement.

Key provisions of the agreement:

Financial year 2024/25: Employees will receive a 6% salary increase, which is structured as follows:

• 4.5% from July 1, 2024
• From March 1, 2025, 1.5% extra.

Financial years 2025/26 and 2026/27: Salary increases are determined on the basis of the CPI plus 0.75%. Financial years 2027/28 and 2028/29: Salary increases are determined on the basis of the CPI plus 1.25%.

This agreement is the result of intensive negotiations held on 15-19 July 2024, 23-26 July 2024 and 12-15 August 2024 at the SALGBC. The final breakthrough came on 15 August 2024, when the mediators made a proposal that all parties accepted as a fair compromise.

The agreement takes into account the challenging economic environment, characterised by high inflation and limited fiscal resources. The agreement will enter into force on 1 July 2024 and will remain in force until 30 June 2029. This deal is expected to provide much-needed stability to the local government sector. SALGA was mandated by municipalities to negotiate a balanced salary and wage agreement that reflects the current economic pressures, particularly in light of several municipalities experiencing financial distress. As part of the agreement, SALGA also introduced a revamped relief process, using a range of financial distress indicators from National Treasury to assist struggling municipalities. While the agreement has received overwhelming support, all parties now have the responsibility to ensure its implementation and defend its provisions. SALGA expresses its gratitude to its member municipalities for entrusting them with the responsibility to negotiate on their behalf, and to SALGBC and organised labour for their cooperation in prioritising the interests of local government. The new collective labor agreement for salaries and wages follows the expiration of a three-year wage agreement signed in 2021, which included wage increases of 3.5% (2021/22), 4.9% (2022/23) and 5.4% (2023/24).