The place where 66 cents in the rand goes to government salaries - and where wage costs have surged

29 June 2016 - 20:15 By TMG Digital

Port Elizabeth’s municipality has hiked its staff costs by 75% since Jacob Zuma became president‚ but that’s nothing compared to a rural municipality near Escourt where the wage bill has soared by 132%. Upington’s municipality‚ meanwhile‚ spends most of its income on staff salaries – not on services.The ZF Mgcawu District Municipality in the Northern Cape – Upington - devoted two thirds (66c of every R1) of total spending to salaries in 2014/15‚ the highest of any municipality.This is according to data from Stats SA’s latest financial census of municipalities‚ which shows that nationally‚ employee-related costs took up the largest chunk of total municipal spend for the 2014/15 financial year.For every R1 spent by South Africa’s 278 municipalities in the year to June 2015‚ 26c was spent on salaries.District municipalities tend to spend the largest proportion of their budgets on salaries. The 44 districts‚ taken together‚ devoted a third (33c of every R1) of their budgets to employee-related costs‚ Stats SA noted.In contrast to Upington’s spending‚ Stats SA said the 226 local and eight metropolitan municipalities spend a larger bulk of their income on providing services. These municipalities spent 25c on salaries for every R1 of total expenditure in 2014/15.Despite taking up the largest share of expenditure‚ the proportion spent on salaries by all municipalities has fallen slightly‚ from 27% (R45 billion) in the 2009/10 financial year to 26% (R73 billion) in 2014/15.Over the same period‚ Nelson Mandela Bay in the Eastern Cape had the largest increase in salaries compared with the other metropolitan municipalities (rising by 75%)‚ followed by Ekurhuleni on the East Rand (up by 70%).Bloemfontein’s Mangaung Metropolitan Municipality showed the smallest increase of all metropolitan municipalities‚ with salary costs rising by 54% between 2009/10 and 2014/15.Over the last year‚ the rural Imbabazane Local Municipality near Escourt reported the largest rise in salary costs in 2014/15 compared with 2013/14 (rising by 132%)‚ followed by Chris Hani District Municipality‚ which includes Queenstown (up by 56%).The Imbabazane municipality will be amalgamated with the uMtshezi Local Municipality after the 2016 local government elections.The smallest percentage increase in employee-related costs from 2013/14 to 2014/15 were reported by Sarah Baartman District Municipality (up by 0‚9%) and Thabazimbi Local Municipality (rising by 1‚1%).Municipalities provided various reasons to account for the rise in salaries from 2013/14 to 2014/15‚ Stats SA said. These include: Expenditure on salaries is driven by the need for labour as an input to providing services and running municipal administration. More interns were hired by most municipalities during the reference periods. Some municipalities provide employment by hiring people to undertake certain tasks that could be done using mechanisation. Some municipalities‚ which are largely located in poorer‚ rural parts of the country‚ had to pay excessive salaries in order to attract the appropriate skills...

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.