The SA Municipal Workers' Union (Samwu) has decided to agree to a wage facilitator’s proposals on public service salary increases.

"Increases will be paid out from the end of July 2012," said Samwu general secretary Mthandeki Nhlapo.

He said the deal was reached in the interest of members and society at large.

The facilitator’s proposal was a 6.5 percent increase in July, and a further 0.5 percent increase in January 2013 with inflation, plus 1.25 percent in 2013/14 and inflation plus one percent in 2014/15.

The SA Local Government Association (Salga) would also provide a 100 percent employer contribution towards medical aid benefits for low income earners.

The deal also included an 18 percent contribution to retirement funds and the filling of the estimated 30,000 vacant positions in the sector.

Speaking at a meeting of Samwu's central executive committee, Nhlapo said the union would soon discuss and deal and the implementation of the wage curve agreement judgment.

The union holds its national congress in Mangaung between August 7 and 10. It said it has a combined membership of 160,000 members.