Losing councillors to share R300m in final round of gratuity payments

Résumé détaillé

The government has set aside R300m to cushion unseated councillors in 2026 – a final round of golden handshakes reallocated from municipal infrastructure budgets amid…

The government has set aside R300m to cushion unseated councillors in 2026 – a final round of golden handshakes reallocated from municipal infrastructure budgets amid sustainability concerns.

The government has set aside R300-million for once-off gratuity payments to councillors who will not return to office following the 2026 local government elections, in what is expected to be the final round of payments under a practice dating back to 2011.

The Department of Cooperative Governance and Traditional Affairs (Cogta) will administer the payments to qualifying ward and proportional representation (PR) councillors, with the amount determined by their length of service and basic salary.

The allocation comes despite the Independent Commission for the Remuneration of Public Office Bearers recommending in 2024 that the practice be phased out, citing concerns about its sustainability and the financial burden it places on the public purse.

National Treasury shifted the R300-million allocation for the 2026 payments from Cogta’s Municipal Infrastructure Grant (MIG) allocation to its Local Government Operations and Support Programme.

The MIG is intended to support municipal infrastructure development, meaning funds were reprioritised from infrastructure to support councillors who have lost their jobs.

To qualify for the payment, councillors must have served a minimum of 24 months between 2021 and 2026.

Under the existing payment structure, councillors who have served for at least 60 months (a full five-year term) qualify for the maximum gratuity of three months’ basic salary, while those who served between 24 and 60 months receive a scaled-down amount based on their length of service.

The payment is calculated using a councillor’s basic salary rather than their full remuneration package. Benefits such as travel, housing, pension contributions, medical aid and sitting allowances are excluded.

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