Zuko Komisa
- City workers will receive a 3.5% pay rise effective 1 March 2026, backdated to July 2021.
- A potential R1.55 billion backpay liability has been negotiated down to R1.08 billion.
- Payments will be staggered over three years to protect essential services and creditor commitments.
The City of Tshwane has finally broken the deadlock on a long-standing pay dispute, reaching a landmark agreement with unions IMATU and SAMWU.
After years of legal battles and financial uncertainty, the city’s administration has opted for a “responsible resolution” to settle its debts to municipal workers without collapsing the local treasury.
The dispute dates back to a 2021 national agreement that the City previously struggled to honour. Following a final court ruling in late 2025, Mayor Dr Nasiphi Moya confirmed that the administration would stop litigating and start paying.
The financial stakes were incredibly high. An immediate lump-sum payout of R1.55 billion would have crippled the City’s ability to pay bulk suppliers like Eskom.
Through negotiations, the total backpay exposure was reduced by nearly half a billion rand, providing the municipal purse with much-needed breathing room.
Implementation will begin in earnest on 1 March 2026, with the payment schedule designed to support those who need it most.
The city has confirmed that workers at the lowest TASK levels will be prioritised in the initial rollout of the staggered payments.
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