The agreement however imposes a zero increase in some benefits such as the homeowners allowance and medical aid.
Salga said the deal meant that there would be stability in the sector, with no need for year-on-year wage negotiations.
“The multi-three year collective agreement will enable municipalities to budget accurately in the medium term budgeting process,” the association said in a statement.
“Municipal employees will dedicate their full attention to rendering accelerated service delivery and the local government can also focus on preparing for the fifth democratic local government elections and the transition without any interruptions.”
The local government elections will be held on 1 November.
Anathi Madubela is an Adamela Trust business reporter at the Mail & Guardian.
