Tshwane Municipality says it will cost R1.8 billion to pay salaries to workers back-dated to 3 years ago

The Tshwane Municipality says it will cost about R1.8 billion to pay its employees back-dated salaries stretching back to three years ago. 

The SA Local Government Bargaining Council recently ordered the municipality to implement a backdated 3.5 percent salary increase for its employees. 

The ruling came after years of litigation between the municipality and worker unions, when the municipality applied for a deviation on the 2021/2022 increases, citing financial difficulties.

Opposition parties have urged the municipality to take the bargaining council’s decision on review, saying that not doing so would place the capital in financial ruin.

However, Tshwane MMC for finance, Eugene Modise, said that the municipality would not be challenging the decision and will find the money. 

"The last resort will be going to the financial institutions, which will be the last resort. Because this came prior to the adjustment budget, we will make sure we accommodate our employees. I want to underscore this: our employees have been subjected to no increase for more than three years and that is not economically viable."

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