Cape Town - There will be no pay increase for mayor Patricia de Lille and her executive in the new year, due to the country’s “economic distress”.
Only ordinary councillors who don’t hold any additional portfolios will receive a 4 percent “cost-of-living adjustment”.
In a report published in the Government Gazette, the Commission for the Remuneration of Public Office-Bearers said the dire state of the economy meant increases were not possible and public servants should view the zero increase as a “patriotric sacrifice”.
Municipal unions had agreed on a 6 percent increase effective July 1, 2016 according to a multi-year agreement signed last year.
The Commission has also curtailed golden handshakes to municipal councillors who weren’t re-elected or retired after the August 3 election.
It recommended only non-returning councillors who served for at least 24 consecutive months prior to the election receive the so-called “once-off gratuity payment”.
The Commission has determined their payouts be based on basic salary and not annual totally remuneration package.
The government has earmarked R309 million to make the payouts.
According to the Commission’s determinations, the mayor’s salary will remain at R1.24m a year, while the deputy mayor and speaker will continue to earn R1m.
Members of the mayoral committee, chairmen of subcouncils and chief whip will earn R940 680.
Ordinary councillors however, will see their pay rise from R519 261 per annum at present, to R540 031 backdated to July 1.
The pay cuts imposed by the Commission extend across the board - from the president to his national executive, national parliament, provincial executive and provincial legislature.
“The Commission is of the view that it is appropriate for high income earners to make sacrifices in difficult economic times. This is particularly the case for those in leadership positions to be exemplary.”
Because municipal councillors are the lowest paid of the elected officials - earning less than half of what is earned by the top echelons in the three arms of state - it was decided to throw them a lifeline.
“There is also the reality that the local government sector is vulnerable in times of service delivery protest. The ward councillors are directly elected unlike MPs and MPLs,” the Commission said.
In 2011, many non-returning councillors lost cars and houses when they left office, unable to service debt and pay school fees. But the Commission said the “termination bonus” for non-returning councillors was “questionable”, because public office bearers should be aware their term of office was limited and they should plan for the eventuality of not returning.
Despite money set aside for these payouts, the Commission said the model was not sustainable and should be revisited.
Cape Argus