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R21 billion a month: The true cost of municipal workers
R21 billion a month: The true cost of municipal workers

IOL News

time3 days ago

  • Business
  • IOL News

R21 billion a month: The true cost of municipal workers

Statistics South Africa's latest financial census reveals that municipalities spent a staggering R143 billion on staff salaries in 2024 Image: Graphics A quarter of all the money spent by municipalities in South Africa last year went towards paying staff, an amounting to R143 billion of overall operating expenditure of R561.1bn. Electricity purchases were the next biggest expense, followed by writing off unpaid debts, according to Statistics South Africa's 2024 financial census of municipalities released this week. In Statistics South Africa's quarterly financial statistics of selected municipalities, also released on Thursday, showed that water sales went up 7.9% in March when compared with a year ago, while sales only increased 0.3%. This could well hint at the sheer volume of water that is lost through burst water pipes. In terms of monthly electricity purchases, these increased 9.9%, with sales gaining 8.5% year-on-year in March. Statistics South Africa's census also showed that South Africa's municipalities secured R576bn in revenue last year, while there was a total of R385.6bn. The data also showed that, by the end of last June, municipalities owed their lenders, suppliers and other creditors a combined amount of R385.8bn, 7.9% more than a year ago. The provinces which showed the highest percentage increases between 2023 and 2024 were: North West (15.9%) Mpumalanga (13.2%) Limpopo (10.8%) The provinces which had the lowest percentage increases between 2023 and 2024 were: Western Cape (2.8%) Eastern Cape (4.1%) Out of the R561.1bn in expenses, the smallest item was paying councillors. According to Payscale, the average salary for a city councillor this year is R294 915 – and there are 9 473 councillors in 213 municipalities. In March 2025, another Statistics South Africa print (quarterly financial statistics of selected municipalities) shows that councillor costs were R967 million for the month of March, while staff costs came in at R21 billion.

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