The SA Municipal Workers’ Union says the recently concluded salary agreement for workers across the country’s 257 municipalities has secured an increment related to inflation in year two and three of the agreement.
The union said the three-year agreement protected the benefits of all employees in the sector while there was a threat to freeze all benefits.
It said employees will receive an increase of 3.5%, with effect from July 1, 2021, and a one-off, non-pensionable cash allowance of R4,000 for those earning less than R12,500 and R3,000 for those earning more than R12,501. Salga said while the salary increase of 3.5% was effective from July 1, 2021, the cash allowance becomes operational at a later stage.
Salga said inflation-linked increases in the outer years of this agreement will be based on the inflation outlook and projections made by the Reserve Bank.
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