Cooperative Governance and Traditional Affairs Minister Velenkosini Hlabisa has amended a determination issued in December that could have seen municipal managers in some of the biggest municipalities earning up to more than R4.4 million a year.
The determination issued on December 18, 2025, made provision for 91 municipalities that adopted unfunded budgets for the 2025/26 financial year to remunerate their senior managers with pay scales at a higher level until such a time they were no longer on the list of municipalities that adopted unfunded budgets.
In addition, the determination also lowered the maximum total remuneration package a municipal manager can be paid from about R4.25m to R3.66m.
Hlabisa stated that any council resolution, remuneration adjustment, or other administrative decision lawfully implemented in reliance on the December 2025 determination prior to the publication of his amendment notice a week ago and which was lawful and in compliance with the notice, shall remain valid.
The minister said his decision took into account the need to prioritise service delivery to communities and to sustain viable local government and the fiscal capacity of different categories of municipalities, which provides a strategic framework for remuneration of senior managers across all municipalities.
“The development of this notice took into consideration the core reward principles aimed at ensuring an appropriate remuneration mix and sought to ensure that the remuneration of senior managers is cost-effective, consistent, internally equitable, externally competitive, and aligned to the achievement of the objectives of municipalities while providing a uniform remuneration framework for local government,” reads the amended notice dated April 14.
According to the notice, the upper limits constitute an integral part of the human resource value chain in building resilient administrative institutions underpinned by the intent to enable municipalities to attract, appoint, and retain suitably qualified and competent senior managers necessary for effective performance of their functions.
“To strengthen the capacity of municipalities, this notice reinforces the statutory obligation binding on municipalities to appoint senior managers who meet the minimum prescribed competencies, higher education qualifications, work experience, and knowledge,” it explained.
The lowest paid municipal manager will earn R1.42m, while senior managers directly accountable to municipal managers will be paid between R1.1m and R2.75m.
Municipalities have been warned to remunerate their senior managers only within the framework of the Municipal Systems Act (MSA) and the notice, setting out the upper limits of the total remuneration packages payable to senior managers.
Any remuneration paid to a senior manager other than in accordance with MSA or any benefit is an irregular expenditure and the municipality must recover that remuneration and benefits from the senior manager concerned.
“A municipality that remunerated a senior manager in contravention of the criteria governing the offer of remuneration on appointment, and in the absence of a waiver granted by the minister, must correct the total remuneration package and recover any resultant overpayment in accordance with Section 32 of the Municipal Finance Management Act and other applicable legislation and legal principles governing the recovery of debts,” declared the notice.
Meanwhile, Acting Department of Public Service and Administration Director-General Willie Vukela announced that Public Service and Administration Minister, Inkosi Mzamo Buthelezi, has determined that salary scales that applied in the 2025/26 financial year, which ended on March 31, will be adjusted by 4% for 2026/27 across all salary levels with effect from this month after the National Treasury confirmed projected consumer price inflation for 2026/27 at 3.4%.
The 4% increase applies to employees in national and provincial government departments on salary levels one to 12, and those covered by the occupation specific dispensations who are appointed in terms of the Public Service Act.
In 2025/26, public servants received salary increases of 5.5%, in terms of the agreement reached at the Public Service Coordinating Bargaining Council in January last year.
*This article was first published by IOL News
