IMPROVING LIVES THROUGH DATA ECOSYSTEMS

Employee-related costs of municipalities rose from R61,2 billion in 2012/13 to R68,4 billion in 2013/14, an rise of 11,6%. This is one of the findings from the latest Financial census of municipalities report published by Stats SA.

Metropolitan municipalities contributed 57,3% (R39 billion) of total municipal employee related costs in 2013/14. Local municipalities contributed 34,6% (R24 billion) and district municipalities 8,0% (R6 billion).

The percentage increase in salaries for metropolitan municipalities is depicted below over a five year period. The City of Tshwane metropolitan municipality experienced the largest increase in salaries in 2013/14 compared with 2009/10, increasing by 70,4%. Second was Mangaung (61,3%). Nelson Mandela Bay metropolitan municipality experienced the lowest increase (8,1%).

Employee-related costs increased by about R23 billion over a five year period, from R45,2 billion in 2009/10 to R68,4 billion in 2013/14. As a percentage of total municipal expenditure, employee-related costs contributed 26,1% in 2013/14.

The municipalities that reflected the largest increases in employee-related costs between 2012/13 and 2013/14 were: Umzinyathi district municipality (up by 91,1%, from R42,3 million to R80,9 million); Amajuba district municipality (up by 78,1%, from R40,8 million to R72,6 million); Nkandla local municipality (up by 72,2%, from R13,9 million to R24,1 million); Musina local municipality (up by 65,1%, from R47,1 million to R77,8 million); and uMkhanyakude district municipality (up by 53,4%, from R70,5 million to R108,2 million).

The main reasons for these increases were: municipalities indicated that more staff were appointed to improve service delivery; more performance bonuses were paid to employees; and additional interns were appointed over this period.

The smallest percentage increase in employee-related costs from 2012/13 to 2013/14 were reported by Ikwezi local municipality (up by 0,6%); Lekwa local municipality (up by 0,8%); Makhado and Prince Albert local municipalities (both up by 1,0%); and uMuziwabantu local municipality (up by 1,2%).

The municipalities that reflected the largest decreases in employee-related costs between 2012/13 and 2013/14 were: Midvaal local municipality (down by 16,7%, from R151,2 million to R126 million); uMngeni local municipality (down by 13,8%, from R75,7 million to R65,3 million); Cape Winelands district municipality (down by 12,3%, from R154,8 million to R135,8 million); Central Karoo district municipality (down by 10,4%, from R8,9 million to R8 million); and Letsemeng local municipality (down by 8,7%, from R29,6 million to R27 million).

The main reasons for these decreases were: resignations, unfilled posts, and a drop in the number of retirements in 2013/14 compared with 2012/13.

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