The Independent Municipal and Allied Trade Union has accepted the 4.75% increase for workers in the local government sector.
Image: File
The Independent Municipal and Allied Trade Union (Imatu) has expressed its relief for the 4.75% iincrease in salaries, homeowners’ allowance, and employer medical aid contributions despite rising household expenses and other cost pressures.
From July this year, the country’s almost 295,000 employees in the local government sector are set to earn a minimum salary of almost R11,100 a month.
According to the union, several everyday household expenses are expected to increase at higher rates than inflation during 2026.
“Electricity tariffs are one example. The National Energy Regulator of SA has approved Eskom tariff increases for the 2026/27 financial year. Direct Eskom customers will face an average increase of 8.76% from April 1, 2026. Municipal customers will face an increase of 9.01% from July 1, 2026,” Imatu stated.
The union, which represents more than 110,000 employees in the local government sector, said medical aid contributions are also expected to increase and that across major open schemes, increases for 2026 are expected to be between approximately 6.8% and 9.9%.
“Fuel prices are another major pressure on household budgets. Current fuel price under recoveries indicate that significant increases may take effect in April 2026. Some estimates suggest that petrol prices could increase by as much as R4 per litre. In addition, new fuel-related taxes will come into effect on April 1, 2026.
“These include increases in the general fuel levy, the Road Accident Fund levy, and carbon tax, which together will add about 21 cents per litre to the price of fuel,” Imatu insisted.
According to the union, higher fuel prices usually have wider knock-on effects across the economy.
“When fuel costs increase, transport costs rise, and this often leads to higher prices for goods and services. Food prices have already been under pressure, particularly in the meat sector following recent outbreaks of Foot-and-Mouth Disease,” Imatu stated.
The union also expressed confidence that while many of the increases will take effect from next month, the municipal wage increase will only come into effect from July, and the hope is that the increase will provide welcome relief for municipal employees already facing rising household expenses.
“These rising expenses highlight the cost pressures that municipal workers are currently facing and form an important part of the context in which the wage increase must be understood,” Imatu added.
Additionally, municipalities that are unable to afford the wage increase may apply to the SA Local Government Bargaining Council for exemption, which must be submitted within 30 days after the municipal council approves the municipal budget, or by June 30, whichever occurs first.
“Exemption applications are heard and determined by independent panelists and are assessed against a range of criteria which include the municipality’s affordability, cash flow constraints, and budget compliance in terms of the Municipal Finance Management Act,” Imatu explained.
According to the union, this process ensures that municipalities experiencing financial difficulties have a way to apply for relief, while their financial position is properly assessed, which also protects the collective agreement by ensuring that exemptions are not used simply as a way to avoid complying with the terms of the agreement.
loyiso.sidimba@inl.co.za