Pretoria - The South African Local Government Association (SALGA) says it has wrapped up wage negotiations with trade unions.
The agreement is for three years and covers the 270 000 employees in 278 municipalities.
It includes a 7% increase effective from 1 July 2015 for the 2015/2016 year, the increase in the second year will be the average Consumer Price Index (CPI) plus 1%, and for third year the average CPI plus 1%.
The minimum wage will increase from R5621 to R6014.93 per month, while a special purpose medical aid benefit instrument is to be created that targets low income earners.
The homeowner allowance in the sector will increase from R545 to R700 per month.
Employees earning below R8 000 per month will under specific provisions receive a non-pensionable monthly allowance to address the “gap housing” problem being experienced in the sector.
The employer and unions also concluded a set of uniform conditions of employment, aimed at assisting municipalities in ensuring effective management and delivery of services.
SALGA said the parties spent a significant amount of time discussing and incorporating a service charter into the agreement.
“The service charter will ensure that all parties express their commitment to improving service delivery to the benefit of all citizens of South Africa, improve good governance and fight corruption,” said SALGA.
SALGA added that government has adopted a stringent fiscal policy stance compatible with lower inflation and interest rates.
“Government’s macroeconomic strategy prescribed that wage demands and settlements had to be realistic and responsible. We are glad to announce that we have achieved this.” – SAnews.gov.za
