Workers were supposed to receive their salaries on 24 July 2026, including scheduled salary increases.
Picture: iStock
Six Free State municipalities have failed to pay employees’ salaries, highlighting the deepening financial crisis facing local government in the province.
The six are part of 16 municipalities in the province that National Treasury withheld its equitable share allocations. Equitable share allocations are unconditional financial transfers from national government revenue given to provincial and local governments.
This was done to enforce fiscal discipline, address massive unauthorised and wasteful expenditure, and force local councils to pay overdue debts to major creditors like water boards and Eskom.
The South African Municipal Workers’ Union (SAMWU) has blamed Treasury’s decision for the failure and delay to pay salaries.
Free State municipalities heading for disaster
The union noted that the municipalities that have communicated their inability to pay salaries or confirmed further delays are:
- Maluti-a-Phofung Local Municipality;
- Mantsopa Local Municipality;
- Mafube Local Municipality;
- Kopanong Local Municipality;
- Mohokare Local Municipality; and
- Masilonyana Local Municipality.
“When National Treasury announced the withholding of the July 2026 equitable share, SAMWU warned that the decision would have serious and entirely foreseeable consequences.
“We cautioned that municipalities would be unable to pay workers’ salaries, pension and medical aid contributions, honour third-party deductions, pay service providers and sustain the delivery of essential public services,” said the union.
“National Treasury nevertheless assured the country that its decision would have no impact on service delivery. That assurance has now been exposed as dangerously detached from the lived realities of municipalities, workers and communities.”
No salaries, no increases
The union added that workers were supposed to receive their salaries on 24 July 2026, including scheduled salary increases. However, the employees were left without their salaries and without the increases.
“Workers had planned their lives and financial commitments around receiving these salaries and increases. They now face the double injustice of being denied both the wages they have already earned and the salary adjustments they were entitled to receive,” said the union.
The union further noted that workers in some municipalities in the province have not received salaries dating back to June 2026, with Kopanong Local Municipality not giving any communication to employees.
“SAMWU has also received reports that workers at Kopanong Local Municipality have not been paid, despite the municipality having issued no formal communication explaining the situation to employees.”
Unfair treatment
The DA in Mantsopa have criticised the Local Municipality for the delay of salaries, arguing that “employees should not be left uncertain about whether they will receive their salaries on time.”
“Every employee has financial commitments, including bond repayments, rent, school fees, transport costs, and other essential living expenses that depend on receiving their salaries when due.”
DA Councillor Erica Moir said it is concerning whether the delay will apply to every employee.
“The Municipality must provide clarity on whether all categories of employees will be affected equally, including the Mayor, councillors where applicable, senior management, directors, managers, administrative staff, general workers, and cleaners.
“If some employees receive their salaries on time while others are expected to wait, it would create a perception of unequal treatment and undermine trust within the municipality. Fairness requires that all employees be treated equally during times of financial hardship.”
Moir noted that the delay in paying employees is a violation of the municipality’s Human Resources Policy.
“Municipal policies are adopted to provide certainty, consistency, and accountability, and they should be adhered to by the Municipality itself.”
Other provinces hit with delays
SAMWU noted that while Free State municipalities are hit the most with delays, the issue has spread to other provinces.
In the Northern Cape, workers at Thembelihle, Renosterberg, and !Kheis municipalities have experienced delayed salary payments, while workers at Kareeberg Local Municipality have been informed that they will only receive payment on Monday.
In KwaZulu-Natal, workers at iMpendle Local Municipality are also affected by delayed or non-payment of salaries.
In the North West, workers at Tswaing Local Municipality remain affected, with outstanding June and July salaries delayed while the municipality awaits the balance of its equitable share allocation.
In Limpopo, Mopani District Municipality managed to pay workers despite not receiving its equitable share.
However, the municipality’s ability to pay salaries next month is now in serious doubt.
“This demonstrates that even municipalities that have temporarily shielded workers from the immediate consequences are being pushed towards a financial cliff,” said the union.
