The South African Local Government Association said a three-year wage deal had been agreed on the remuneration of municipal employees
The deal package includes a multi-three year wage deal, pension fund reforms, a financial relief mechanism for municipalities in financial distress and for the terms of the agreement to be revisited should unforeseen negative economic circumstances arise during the period of the agreement, the South African Local Government Association said.
According to the collective agreement for the current financial year, all municipal employees will receive a 3.5% increase effective from 1 July this year. Employees earning a basic salary of R12 500 or less as of 1 July who will receive an amount of R4 000 andThe agreement however imposes a zero increase in some benefits such as the homeowners allowance and medical aid.
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