Tshwane agrees to pay over R1bn in backdated salaries owed to workers

The Tshwane Municipality has reached an agreement with trade unions over the R1 billion in backdated salaries owed to workers.

In 2022, the municipality reneged on implementing a previously agreed upon 3.5% salary increase for its workers, citing financial difficulties.

However, after years of litigation, the municipality has agreed to pay the increase.

At a media briefing on Thursday, Tshwane Mayor Nasiphi Moya said the backdated salaries will be paid out over three years, with the lowest earning workers receiving their monies first.

“Importantly, those employees who leave the City of Tshwane either through retirement or resignation, will be paid their outstanding back pay on exit. This settlement honours workers while safeguarding service delivery and long-term fiscal health. This naturally raises the question of affordability.

“The settlement is supported by the 2025/26 adjustment budget currently before council. To be clear, the budget remains fully funded, with an operating surplus of R1,208,052,105.

This confirms that the settlement has been absorbed without destabilising the city's financial framework.”

Former Finance MMC Jacqui Uys was part of the administration that applied for exemption from the 2022 salary increases.

Uys, who is also the Democratic Alliance (DA)’s caucus chief whip, said the city’s financial position has not improved since then to afford the increases.

“For the current administration to say this will not have a financial impact on the city and will not have an impact of service delivery is a complete fallacy. What the reality is [is that] they are taking this money from positions that could’ve been filled with electricity workers and plumbers.”