The SA Local Government Association announced on Wednesday that a wage agreement with a 3.5% salary increase for the first year of the three-year agreement has been reached.
In addition, employees will receive a one-off, nonpensionable cash allowance of R4,000 for those earning a basic salary of R12,500 or less, and R3,000 for those earning a basic salary of R12,501 or more as at July 1.
“The new collective agreement represents a compromise for all the parties and on the other hand it gives municipalities in financial distress a lifeline until 2023. Salga said the agreement also imposes a zero increase in some benefits, such as homeowner’s allowance and medical aid. Salga said the collective agreement means that there will be stability in the sector in that there will be no need for year-on-year wage negotiations.
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