Eskom has announced that it has agreed on a 7% wage increase for all non-managerial employees over a three-year period.
- The agreement includes a 5.5% increase in basic salary, a 1.5% increase in housing allowance, and a R10,000 ($695) once-off payment.
- From 1 July 2023 to 30 June 2026, Eskom employees will enjoy the wage increase. On top of this, the parties agreed to a 7% increase in the housing allowance over the three-year period and a once-off taxable payment of R10,000 for the first two years.
- The wage increase comes after several months of negotiations between Eskom and its labor unions.
- The National Union of Mineworkers (NUM), the biggest union at Eskom, has welcomed the agreement but has also called for improvements in other areas, such as job security and the restructuring of Eskom.
- The wage increase is expected to cost Eskom around R1.8 billion ($125 million) per year.
- Eskom has been facing significant financial challenges in recent years, including high debt levels and operational inefficiencies.
- The wage increase may put further pressure on Eskom’s finances, but it is seen as a necessary step to retain skilled workers and maintain stability in the electricity sector.