Employee related costs are the single largest line item for most municipalities. Treasury’s guidance puts a normal range at roughly 25 to 40 percent of total operating expenditure. Well above that, and a municipality is paying people rather than delivering services. Well below it can also be a warning, sometimes indicating that functions have been outsourced or that posts stand vacant.
| Municipality | Province | Salaries as share of spending | Employee costs | Grade |
|---|---|---|---|---|
| Sedibeng | Gauteng | 76.4% | R326.0 million | C |
| West Rand | Gauteng | 72.4% | R232.4 million | C |
| Pixley Ka Seme (NC) | Northern Cape | 69.2% | R56.7 million | D |
| Z F Mgcawu | Northern Cape | 67.2% | R65.1 million | C |
| Waterberg | Limpopo | 66.6% | R126.4 million | D |
| Lejweleputswa | Free State | 66.0% | R140.9 million | D |
| John Taolo Gaetsewe | Northern Cape | 65.0% | R88.5 million | C |
| Xhariep | Free State | 64.3% | R48.8 million | D |
| Garden Route | Western Cape | 64.1% | R314.6 million | C |
| Thabo Mofutsanyana | Free State | 63.7% | R54.3 million | C |
| Dr Kenneth Kaunda | North West | 61.6% | R144.1 million | D |
| Central Karoo | Western Cape | 59.4% | R68.7 million | C |
| Impendle | KwaZulu-Natal | 59.3% | R55.2 million | F |
| Ngaka Modiri Molema | North West | 56.0% | R457.2 million | D |
| Namakwa | Northern Cape | 55.9% | R45.4 million | B |
Reading the figure fairly
A high ratio is not automatically mismanagement. A small rural municipality has fixed staffing needs regardless of how few ratepayers it has, so its salary share will naturally be higher than a metro’s. The figure is most useful compared against municipalities of similar size and type, which is what the comparison tool is for.
Figures on this page come from National Treasury, Statistics South Africa and the Auditor-General, as set out in the sources and methodology. Read the methodology