Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)NoticesUpper Limits of Total Remuneration Packages of Municipal Managers and Managers Directly Accountable to Municipal Managers14. Transitional provisions |
| (1) | A municipal council may apply in writing to the Minister for exemption, using an application form which corresponds with Annexure B, after consultation with the MEC responsible for local government if the municipality cannot afford to implement item 6 and 7 as set out in this Notice. The Minister will consider each application on merit, based on circumstances and motivation provided by the municipalities. |
| (2) | If the remuneration of a senior manager is higher than the applicable pay scales determined in items 6 and 7, the personal-to-incumbent principle will apply. In such cases, the senior manager shall retain his or her current total remuneration package and benefits; however, the senior manager shall not be eligible for pay progression, and any adjustments to the remuneration package shall be limited to the cost-of-living adjustments determined by the Minister until the applicable salary scale is aligned through the normal determination of upper limits. The cost-of-living adjustment for the 2024/25 financial year is 3%, and for the 2025/26 financial year is 3%. |
| (3) | A senior manager who was remunerated at the midpoint or maximum in terms of the previous Notices, or whose remuneration falls between the notches prescribed in this Notice, must be placed, for purposes of this Notice, at the closest matching notch, being the nearest higher notch. A senior manager who was remunerated at a minimum in terms of the previous Notices shall be placed at the minimum of this Notice. |
| (4) | For a senior manager to qualify for pay progression, he/she must have completed the full cycle of the performance management system for the 2025/26 financial year, have a signed performance agreement, being assessed for the 2025/26 financial year, and complied with all requirements in terms of the Local Government: Municipal Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers, 2006. |
| (5) | Item 10 does not affect the existing cellphone and data contract of a senior manager entered into before the date of this Notice. |
| (6) | Despite every effort taken to address scale creep, if such an eventuality occurs where there is still a salary creep, the municipal council must in consultation with the MEC responsible for local government correct it by paying the municipal manager four salary levels or grades above the highest paid third level managers, and in the case of a manager directly accountable to a municipal manager two salary levels or grades, above the highest paid third level managers, subject to the following criteria: |
| (7) | The MEC responsible for local government in the province must, within 14 days notify the Minister of any determination, approval, or corrective measure made in terms of item 14(6), including the grounds on which such decision was taken and the municipality’s historical compliance with previous determinations on upper limits and waiver approvals. |
| (8) | A senior manager to whom a waiver was granted at the midpoint, or maximum must be placed at the closest matching higher notch in terms of this Notice. No waiver shall apply where a person commences a new position in the same municipality. |
| (9) | Where a senior manager has been granted a remuneration waiver resulting in placement one or two notches above the highest-paid third-level managers, the municipal council must, in consultation with the MEC responsible for local government in the province, correct such disparity in accordance with the principle and criteria set out in sub-item 14(6). |
| (10) | If the grade of a municipality is lower than the previous categorisation as determined in terms of this Notice, the municipality shall retain the categorisation prescribed in the previous Notice and a senior manager— |
| (a) | who is appointed as at 30 June 2025, will be remunerated in terms of this Notice as per item 6 and 7 in accordance with the categorisation determined in terms of Government Notice No. 4897 in Government Gazette No. 50787 of 14 April 2026: Provided that the data used by the municipality for determination of the grade of a municipality is correct; and |
| (b) | is entitled to the applicable cost-of-living adjustments aligned to the Minister’s determination: Provided that the data used by the municipality for determination of the grade of a municipality is correct. |
| (11) | The criteria as contained in Item 9 shall apply with effect from 1 July 2024. |
| (12) | This Notice does not affect the existing employment contract of a senior manager appointed before 1 July 2014. |