Tshwane won't appeal order to backdate pay hikes

The City of Tshwane on Tuesday announced that it will implement the bargaining council ruling made the previous day and pay retrospectively the 3.5% salary increase its staff was entitled to in 2021-22.

- Antoinette Slabbert

This means the city must find at least R2 billion to foot the bill payable in the next six months, according to the ruling.

Where that will come from is not clear.

This is a huge setback for the city, which has started making modest progress towards financial recovery, said Leon Claassen, managing executive at Ratings Afrika.

Ratings Afrika annually analyses the audited financial statements of the larger municipalities in the country and publishes the Ratings Afrika Financial Stability Index.