Several municipalities that have struggled to pay workers’ salaries over the past two months have committed to settling outstanding wages this week as they await the release of withheld equitable share allocations from the National Treasury.
The expected payments come in the same week as the joint briefing by the department of co-operative governance and traditional affairs (Cogta) and the National Treasury on Tuesday, when an update is expected on the withholding of R13.5bn from this year’s municipal equitable share allocation of about R100bn.
The salary delays have left municipal workers in several provinces battling to meet basic financial commitments, with some unpaid for June and July.
Employees told Sowetan they have fallen behind on bond repayments, rent, school fees, transport costs and other household expenses, while bank charges and debt continued to mount.
“It’s so frustrating. Debit orders are bouncing and bank charges are exceeding R1,500. Creditors keep calling non-stop and we don’t know what timelines to give them because our employer hasn’t told us when we will be paid,” said an employee from one of the affected municipalities.
“We have had to borrow money from loan sharks, hoping we’d be paid this month, but payment hasn’t come through.”
There is no reason why we should continue working without receiving our salaries ... We don’t want to continue working and go two months without salaries
— Maluti-a-Phofung worker
The South African Municipal Workers’ Union (Samwu) previously identified at least 12 municipalities affected by salary delays, with the Free State hardest hit.
The municipalities include Maluti-a-Phofung, Mantsopa, Mafube, Mohokare and Masilonyana, while Kopanong, Thembelihle, Renosterberg, !Kheis, Kareeberg and Tswaing have also experienced delayed salary payments.
Most internal memos seen by Sowetan from the municipalities blamed the equitable share being withheld as the reason for salary delay issues.
In Maluti-a-Phofung, workers have adopted a “no pay, no work” approach after receiving notice salaries would be delayed without a confirmed payment date.
“There is no reason why we should continue working without receiving our salaries,” an employee said. “We engaged our employer and were told the required documentation had been submitted to the National Treasury, but we don’t know when the money will come. We don’t want to continue working and go two months without salaries.”
Kopanong municipality disputed reports that June salaries had not been paid.
Municipal spokesperson Solly Phama said employees received their June salaries a week earlier than usual and July salaries were only due at the end of the month. He confirmed Kopanong’s equitable share had been withheld but said the municipality had since complied with the National Treasury’s requirements.
“A portion of the equitable share was transferred to the municipality to pay creditors, and the remainder will be transferred in line with the agreement reached with National Treasury,” Phama said.
Outstanding employee salaries are expected to be paid as soon as the National Treasury releases the equitable share allocation, which is anticipated some time this week. All the required documentation has been submitted to National Treasury
— Lucky Mosala, Treasury representative
In the North West, the Tswaing local municipality confirmed June and July salaries remain outstanding. In a statement issued on Monday, the municipality said it expected to process both salary payments later this week once it received the remaining balance of its equitable share allocation.
It said May salaries had been paid on July 10 through intensified revenue collection efforts and further measures were being implemented to improve debt collection and strengthen the municipality’s financial position.
Lucky Mosala, a provincial representative from the National Treasury, said the municipality’s financial challenges were linked to poor revenue collection, unfunded mandates and ongoing cash-flow constraints.
“Outstanding employee salaries are expected to be paid as soon as the National Treasury releases the equitable share allocation, which is anticipated some time this week,” Mosala said. “All the required documentation has been submitted to National Treasury.”
The South African Local Government Association (Salga) has warned that withholding municipal equitable share allocations may improve compliance in some cases, but risks worsening cash-flow crises in struggling municipalities, leaving workers unpaid and disrupting essential services.
The association said municipalities are facing deep-rooted financial pressures, including:
- declining revenue collection;
- rising bulk electricity and water costs;
- ageing infrastructure;
- unfunded mandates; and
- consumer debt that exceeded R480bn by March 2026.
“The withholding of transfers may achieve compliance objectives in some instances, but where municipalities are financially distressed, it can deepen cash-flow challenges with unintended consequences for workers, service providers and communities who rely on municipal services,” said Salga spokesperson Motalatale Modiba.
Sowetan
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